Given that Microsoft seems to be investing heavily in Azure, I'd wonder exactly how they plan to beat AWS. AWS had some new machine learning algorithm added a month ago; Azure doesn't have that. Either way, however, is a win. If Microsoft's making some fatal mistake with their new business model, then maybe they'd go bankrupt and help the industry by going open-source before death. If Azure stays where it is or ranks up in usage with its SaaS model, then there'll probably be some interesting competition between them two and Google with large user bases. Either way, there's competition, which will (almost) forever spiral downward prices and upward capabilities.
The scary thing about Microsoft is that they have at least 10s of billions of dollars in the bank. They will likely never go bankrupt, but I'm not sure they'll ever make money in computers again if the Windows/Office gravy train ever comes to a halt.