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This is somewhat disappointing, not that Microsoft isn't going to swwallow another company whole (again), but that something that should be a core feature of any operating system is going to be forced to be an outside product. There are certain features I'd consider to be basic to any operating system based on where we stand with technology currently. They are:

1. Web Browser. I'd prefer something a little more light-weight, yet extensible, than Internet Explorer (which is why I've switched to Firefox), but having one in the OS by default is important. Why? Because in this frequently web-centric world, more and more applications are moving away from the desktop into the information ether. Like, say ... E-MAIL. I don't want to use a bloated E-Mail client (like Outlook) when I can get away with it. I want to use something that will let me read and respond to my e-mail, and that's about it. A web browser lets that happen. In fact, if Microsoft were to be a little more clued in, they'd realize that if they slimmed IE way down, adhered to standards, and sold micro-programs (what Apple and others are now calling "widgets") that can put part of the information flow on the desktop, they could make a mint.

2. Anti-Virus. Yes, it's number 2 on my list, but only because there is a great web-based virus scanner available over the web, which needs only a web browser to work. But a robust, and more importantly, automatic, virus scanning utility needs to be built-in, and automatically updated. A user should NEVER have to pay anything to have their system be free from intrusion, especially when holes in the OS or software are how they probably got infected in the first place. Microsoft not wanting to buy (or at least, denying they want to buy) McAfee is disappointing for that reason alone.

3. Automatic Updates. Every computer I use should have the same core functionality, and the only way that will happen is with Automatic Updating. Yes, other installed programs will be different, but again, as we move towards webcentricity, this will be less and less an issue. Overall, I just want to make sure that if I reasonably expect something that is part of the core OS to be on a machine, it will be.

Surprisingly even to me, that's my complete list. Everything else I could think of is so subjective that anyone might want or need something different. In exploring this, I think Microsoft is going to have a hard row to hoe going forward. Microsoft owns the desktop, but since we're all migrating away from the desktop, this might be dangerous to the giant, who has always said that "any kid in their garage could put us out of business". It was never more true.

Microsoft needs to start making web versions of their programs, and maybe sell subscriptions to them for a reasonable rate. Microsoft keeps them all up to date, so any machine where I log into my Passport as an update version of Office available as long as my subscription is current. Maybe, $10 a month or something? It would cut into the Office cash cow for sure, but if they don't do it, someone else will. Some programs need to be on the desktop, like Photoshop, where you need a great deal of horsepower. Gaming is another one. Office is NOT one of them. Office hasn't needed horsepower in years.

Microsoft got where it is by anticipating where the market is heading, and getting there either first, or a close second. They did it with the Internet, and many other products, and even most recently with allowing its employees to blog. In fact, someone has even figured this all out to a degree with Outlook's web interface (which I use to get my mail more than the client itself). Now the rest of Redmond needs to catch up.