I agree it's a tough road and very likely to end up at the same place as the Zune, only with more detrimental effects to the company. I also think that MS really needs to connect with a hail Mary here if they want a future. The iPad is a HUGE threat because people are doing on it what they've traditionally done on PCs.

In my own house I almost never use my PC except as a media content provider- and that is certainly not a strength of the OS. Almost everything I used to do on my PC I now do on my iPad. Why? Because its convenient to carry around and just turn on and use whenever I want it.

Sure MS has the workplace for a while, but now many years will it take of people not using their products at home before the natural shift occurs to not using them in the workplace either? Already when we go to our planningmeetings where we need to update our project plan we have a mix of iPads and laptops in attendance.

The whole Windows 8 approach is evidence that MS takes the iPad threat seriously- they are fundamentally changing their OS usage pattern so they can try and compete. This absolutely must not fail from their perspective- this isn't like Silverlight or the Zune where it's a part of their strategy that can be jettisoned if it doesnt work out.

And if they fail (which I don't see unlikely)? We'll all move on and adapt. That's the free market for you. But I do hope someone is able to challenge Apple and give them a good run.

And yes, I typed this post on my iPad.