Cloud jargon notwithstanding, MS knows very well that individuals and particularly businesses will not continue to purchase upgrades they don't need at ridiculous prices (as they are experiencing with Office 2007),even though they are pressuring them to do so through extremely complicated licensing schemes like "Software Assurance" that even MS's own licensing experts have difficulty understanding.
When MS said it was "betting the company on dotnet" it was referring to a strategy of "... it would essentially transform the heart of its revenue base from packaged software to subscriber-paid ''interactive services.'"
http://query.nytimes.com/gst/fullpage.html?res=9A01E7DE1730F936A15755C0A9669C8B63
LOL your link is not only to the NYT, it’s seven years old! Microsoft still sells directly off the shelf at brick and mortar stores, they’re not changing anything until they have to meanwhile these open source cloners can’t even reach 5% giving away free downloads from the comfort of your couch.