Larry Ellison said pretty much the same thing fifteen years ago - needless to say, we're all still waiting.
Today is a different story, and it's being driven by Google. Now that everyone is comfortable using its basic search, they're pushing their speciality services. As these begin to make significant headway in certain markets, such as libarary services, we will begin to see the impact on vendors selling vertical (ie MS) applications in these markets.
This is only the beginning - it's quite easy to see where it's going. Another obvious element is that Google is on a hiring binge - cadres of young PhDs are heading to Sunnyvale instead of Redmond.