There is an ongoing battle from Cisco with Microsoft. Guess for what? It is all about video and web conferencing.

Microsoft seems to be competing with just around everyone!!

I think Microsoft have to compete with everyone now. Because other companies are showing their potential now. Other companies are growing slowly and adding more and more facilities for the users to grab attention of the user.

You are right. Recently Microsoft tried to acquire Yahoo. Or they tried to make big news about it.

It was said that in this recession when everyone is running for money Microsoft got the luxury to make a big acquisition

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Microsoft is just around the corner it seems like the right to compete with you!
I think that Microsoft has competition, everyone can. Because other companies have shown their potential in. Other companies have also enhanced facilities and increased the growing number of facilities for users to grab the user's attention.