Microsoft's behavior just keeps changing. First they tell us that the future is software over the internet and that they're shifting their entire business model to take account for it. Then they leak an internal memo and as a result tell the world that they have been left behind and risk being left behind for good if they do not embrace a new era of change and stop missing opportunities such as RSS, Skype, Blackberry, etc etc etc. And it looks like Ray Ozzie is increasingly setting product and technology direction - not Billie.
Now we hear that Microsoft is trying to lobby for the US government and US companies to help them fight the anti-trust hearings that went against them in Europe last year! Microsoft needing help from the US establishment? That's a first.
All of these tremors coming out of Seattle are the signs of a company that is running scared and confused. Microsoft is being attacked on so many fronts that they seem to be struggling to keep their balance. They need to take a collective sigh and focus on the new direction. It will be scary for them as in the world of software as internet service where it is often free, they are laggards and running from far behind the pack.
It may take Microsoft two years to stop the rot and change direction for real. By then, Google, Nokia, salesforce.com, Linux, SUN, etc etc etc will be even further ahead. They have to stay the course. And live.com will need to go through many more iterations before Microsoft can make anything of it. Good luck guys.