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Yes, the business products may make some headway in smaller companies. But I work with these issues at the large corporate issue all the time and short of Microsoft actually discontinuing the Office suite of products, nobody else is going to dislodge them. I constantly deal with developing around IT infrastructure from the '60s. Big corporations are amazingly conservative on some things.
And if Google docs does start to make inroads, all Microsoft has to do is release a server based product using their standards and the threat is gone.
I have no problem with the idea that Microsoft will lose in some sub-markets. I just don't see it (as a producer of productivity software) being "killed."
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