Interesting article at Informit about "Why is Microsoft Afraid of Google?". Some particular comments made by university business professors, not web people.
"...Microsoft, however, tends to focus on stopping the onslaught of the web -- which it did very well with Internet Explorer in the late 90s --"
"...there have been no major new improvements in Internet Explorer in years."
"It's not clear how much Microsoft actually believes that the web is the platform of the future."