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It isn't so much gloomy as it is challenging. Mostly on the legal front, but in that area we haven't seen any major impact so far, other than "ongoing" matters. The situation has yet to crystallize.

Other than that the big challenge for Page and crew is to make Android tablets matter. I think they'll get to that point well before MS will.

I'm far, far less worried about Google than I am about MS. Say what you will about Google - I've been pretty critical of them myself - but at least they aren't afraid to take risks and they're willing to get in on the action early enough.
 
Seems like Google wants to follow in the steps of MSFT in terms of losing relevance.
 
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