It's amazing to think that such a massive behemoth could change direction in so little time.
There were only a few pockets of "New Microsoft" back then, but they were there if you looked, and they were working their asses off to change the culture. Clearly their work has paid off.
It was a bottom-top approach with Nadal as result. Ballmer couldn't understand the new wave. Just like many "old" CEO's of software companies don't understand.
I know companies who still keep programming in Access and Terminal Server, Asp forms, ... Just because their boss understands that.
The higher-ups have more to lose (in terms of encroached positions) and don't usually eat their own dog food.