This from the WSJ
Google is in serious discussions with Verizon Wireless over a partnership in which Verizon would carry cellphones tailored to a new Google operating system, a person familiar with the discussions said. Speculation about Google's mobile strategy have helped shares of the Internet giant surge near $700.
For more information, see: http://online.wsj.com/article/SB119377870431576706.html?mod=djemalert
Google is indeed a very serious threat to Microsoft. They have the mass and the momentum to take MS head on. They also have the monopoly (online advertising) to essentially compete with Microsoft's two monopolies. Fun to watch two giants battle. Google is no longer a David to the MS Goliath.