Dell just announced that they're going to start shipping PC's with Linux pre-installed.  I think this is the beginning of the end for Microsoft.  Once people see a price difference on the system list between the Windows and Linux desktops, they're slowly but surely going to start the migration to the cheaper alternative.  This will result in pressure being put on all the major manufacturers and distributors to start shipping Linux desktops as well, or they will lose that business to Dell (and create one hell of a marketing opportunity for Dell until they close that gap).  This will result in a lot more facetime for Linux with the average user, which will result in the price increase for a Windows system becoming even harder to swallow, which will result in more market share, and so on until Windows dies.

I wonder if the guys at the top of Microsoft are looking at this and REALLY trying to figure how to respond long-term, or they are just being pissed and strategizing about toilet papering Michael Dell's house.  They can't strong-arm shelf space anymore, their arms are being chopped off.  As I've said before, I think the only way to keep Windows in the race for more than a couple more years is to make it open source.

This idea seems to have been picked up by Paul Graham and the Tech.Meme crowd, interesting to read other people's opinions on it.