Microsoft vs. Adobe

I ran across this article that quickly talks about the possibility of the two companies competing directly and head on in the graphics/web department. It seems interesting to me that microsoft feels so theatened.... but who wouldn't be. It talks about microsoft possibly giving graphics software away with longhorn but I doubt that would pull adobe out of focus for high end graphics artists seeing as there are already free software solutions that exists but that are not mainstream. Microsoft would also not only have to penetrate into the windows world to encroach on adobe but also mac and linux. Read more here.