Which is exactly why 1) MS is freaking out and 2) They have planned out a future where software is leased via web services, rather than sold, so users will have to pay a fee every month for their word processor, etc.
Google and IBM are who’s trying to push everything back up to the cloud. Microsoft made it’s fortune with a distributed architechture and will mostly stay there unless open source destroys the ability to make money on the desktop and forces them up the stack, which I doubt. Pure open source is actually waning right now and Apple is the hot new topic.