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Microsoft will, of course, offer a similar product based on IE + Bing + Live. The only real loser here are the PC OEMs. In 2 years they'll be reminiscing about the good ole' days of high margin netbooks.

Similar? Only on paper. Sure it will be designed to meet a bullet-point list of formal features compiled by an Analyst, but those won't matter much in the end.

It will not have the appeal nor the ability to interconnect with standard-abiding software from ISVs from all over the world the Google offering does right now. Carpet-bombing style marketing won't help much.

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