You can tell Microsoft still don't understand the web, because they make comments like this:
IBM is no longer at the center of the computer industry, he asserted, for two reasons. First, the industry is now centered on personal computing. "As much as IBM created the IBM PC, it was never their culture, their excellence," he said. "Their skill sets were never about personal computing."
Actually, personal computing dates from the 1990s. We're now entering a different era - call it "web computing" or "social computing", where the focus is on collaboration and networks of people.
Facebook and Flickr are not personal computing - the world doesn't sit on your C: drive any more.
Times have changed, and you have to ask whether Microsoft's "culture", "excellence" and "skill sets" are keeping pace.