Now that he has the reins, Microsoft CEO Steve Ballmer says he’s going to be the primary champion of innovation.He’s going to perfect advertising-funded software as service, alongside subscription-based software as service. Everything Microsoft will be delivered via the web.

Ballmer’s throwing everything but the kitchen sink into Windows Vista and Office 2007.

Since the industry is finally settling on a standardized architecture, Microsoft’s perfectly positioned to seize the high power computing, web hosting, and security from Linux.

An alternate reality:
Linux desktops become user-friendly enough to support browser-based Office-like offerings while more polished open source Office-alikes steal seats worldwide, led by cash-strapped and license-weary bureaucracies.

Meanwhile, Linux servers enjoy a fresh surge of innovation, as open sourcers expand the exciting world of virtualization while tightening security.

Which prediction sounds more realistic? Hmmm…