I have to agree with Garett Rogers in his ZDNet post about: Microsoft's denial over Google could spell disaster where he talks about Microsoft ignoring the looming threat from Google.

Here is an excerpt from the article:
"It seems that over the last 10 years, Microsoft has been in denial. Blatantly trying to ignore Google, and passing them off as not a threat. I guess when you are the giant in a space, you don’t want to admit that you’re losing or have lost your mojo, and there are competitors coming up behind you fast. Blinders are wonderful things that keep you marching to your own beat in a relatively straight line — but what if that line is wrong, and your beat is way too slow?"
With Elop stating that Microsoft has no plans to make any applications for the iPad, it is clear that he (and Microsoft by extension) don't see Google as a threat and it may come back to bite them. Further, with Apple's market cap being only $50 billion behind Microsoft, it is clear that Google is not the only real threat to Microsoft's dominance in the market.

I think (meaning this is my opinion) that Microsoft needs to start taking both Apple and Google seriously... and I don't mean simply starting a pricing war over hosted collaboration, which I "lovingly" call the clash of the titans, that is going to bring the small Microsoft email hosting partners to their knees... more on this topic another time.

I don't want to end this article without mentioning that although Microsoft is not doing anything for the iPad, Citrix and others are filling in the gap. With the Citrix Receiver, the iPad becomes an enterprise device with the ability to run Windows 7 and the full Office suite. Citrix has enabled CSPs (Citrix Service Providers) like CenterBeam to provide Hosted Virtual Applications regardless of the endpoint operating system.

With a full suite of SaaS and PaaS offerings, Customers of CenterBeam's Cloud Service, can enable their Executives and mobile workers to function with an iPad and no other device.