I agree with CNN. Go and read the actual article.
Sure, Windows is still installed on most of the worlds computers, but for how long will we actually even need a full desktop OS? Witness companies that, at the beginning of the decade issued laptops to their workers, then gave them mobile broadband cards, and today no longer issue computers to field employees at all: they get a smart phone.
The iPad has already completely changed the direction of Netbooks. And by that I mean, reversed the direction. Netbooks, as a sector, are falling in sales in comparison to the previous year month on month. The space is growing smaller and smaller.
Why? The iPad has an easy to use interface, and provides easy, direct access to kind of content users want. Its an easy way to get entertainment media, news, and is a powerful game platform (sure it won't play Gears of War 3, but if the Wii taught us anything its that the casual use market is huge, and wants simple, fun content they can connect with).
Microsoft, however, does not have a tablet interface. As, I think it was Asus?, recently said, the Windows 7 interface is still designed to work like any OS from 1985: with a mouse and keyboard. It doesn't lend itself to a touchscreen very well. And Microsoft does not have a tablet interface project ongoing: they're just hoping someone comes out with hardware beefy enough to run Win7.
What about Windows Phone 7? Ballmer can cry all he wants about being "early," the smartphone revolution began 4 years ago with the first iPhone. Android succeeded because it removed the limitations of the iPhone platform, and was made freely available to anyone who wanted it on their phones (hence, nearly every cell manufacturer has an Android Phone anymore).
Windows Phone 7, however, is a proprietary OS. It can't be spec'd out by the manufacturer like Android.
The worst part? Windows isn't cool. What Microsoft needs is a consumer base willing to dive into a new product or service with nothing more than brand loyalty. Anyone here think they could stand up for Microsoft the way Apple fans do for Apple products?
Sure, in 10 years Microsoft will still be around. But will it be king? Will it break into new markets? If Ballmers past performance is any indication, no. Microsoft missed every big new thing in tech in the past decade. They missed out in search, they missed out on smart phones (they barely have 5% market share now), they missed out on content distribution (iTunes being the worlds largest music retailer, Zune being DOA). They completely missed cloud media, and the worst part is they were the first to it with Windows Media Player. But Netflix, iTunes, any number of channels beat WMP even though they showed up later. Microsoft missed social networking, its only claim in the area being it bought into Facebook.
They missed out on gaming. Sure, the Xbox 360 has finally turned a profit and is making Microsoft some money, but it damaged their reputation with faulty hardware and how poorly it was handled. And meanwhile the Wii ate both Sony and Microsoft's lunch, being much more profitable. And it proved that simple, connected games would make way more impact and money than old school games. Sure, the biggest selling releases on consoles still put up huge numbers, but even the big game studios are trying to get games up and running for the iPod, iPad, and Android phones.
Microsoft has lost the OS battle. More computers run IE, true, but how many of those are terminals running IE6 in some cubicle farm customer communications office, where the employees don't even open the browser? Its not that most people in the consumer space actually use IE, its that there are dummy computers out there running it with whatever scripts or virtualized programs they've been running for some business strategy.
Microsoft is a one trick pony. It has the Windows OS. That is it. And in the future, that may stop being relevant in the consumer space.