Microsoft is under attack by a bevy of competitors. But is the software giant really at its "most vulnerable moment in history"? In the second part of our report we examine how Microsoft hopes to beat its rivals.
Microsoft has plenty of headaches.
A raft of companies is newly emboldened to challenge the software giant in every market: music, messaging, mobile phones and more. "Open source" projects - developed by legions of volunteers - undermine the firm's business model.
To make things worse Microsoft's developers are struggling to close the security holes in their software. And as long as consumers don't trust the Microsoft world, they are unlikely to buy into the digital lifestyle vision of company founder Bill Gates.
But despite what rivals may say, the software giant is not on the ropes just yet. Microsoft has a multi-billion dollar pile of cash ready to invest, and Bill Gates has a strategy to fight his rivals.
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