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Ballmer Admits Google Apps Are Biting Into MS Office 293

twitter points out coverage of a discussion between Steve Ballmer and two Gartner analysts in which the Microsoft CEO admits that Google Apps is enjoying an advantage over Office by users who want to share their documents. He points to Office Live as their response to Google, and adds, "Google has the lead, but, if we're good at advertising, we'll compete with them in the consumer business." Whether or not they're good at advertising is still in question, if their recent attempts are any indication. Ballmer also made statements indicating some sort of arrangement with Yahoo! could still be in the works, but Microsoft was quick to step on that idea. Regarding Windows Vista, he said Microsoft was prepared for people to skip it altogether, and that Microsoft would be "ready" when it was time to deploy Windows 7.

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