I don't work for MS, but I must admit I'm impressed with Bing. Is it better than Google? Maybe not, but it's still impressive. And they certainly seem to rev changes to it just as fast as Google is doing nowadays.

We'll see how Office online plays out. And don't forget that MS Online Services has like 40million paying customers.

They also do something called XBox Live and even Hotmail has gotten a little better over time. And I find Live Mesh to be the best cloud sync'ing app I've ever used. All in all, I think they're doing OK (not great, but OK).