Have we met before?
Considering my company builds the hardware Microsoft runs on, the only advantage they have vs. us is that they can give away their licensing. Nothing from an architecture standpoint is different than what we could provide sans their proprietary Mississippi AD replication process. All the rest of their "advantage" is that they are providing cut rate T&Cs in their contract. For example:
1.) My service could be a lot cheaper if we didn't back anything up and just relied on redundancy
2.) My service could be a lot cheaper if we never had to interface with end users
3.) My service could be a lot cheaper if there were an enforceable contract term that *made* the client stay on current technology
4.) My service could be a lot cheaper if my folks could use one login to manage every client
5.) My service could be a lot cheaper were it not for the risk of service restoration SLA's vs. aggregate uptime over a month
6.) My service could be a lot cheaper if we just used VLAN segmentation vs. firewall segmentation
All of those are constraints that our clients put on us when we deliver their service, and I've worked with enough clients migrating to BPOS to know that when the clients start to dig at that level, there is plenty of buyer's remorse going on. The real question is if our clients really need that crap... which is a fair question. They *think* they do, and write their RFQ's with those types of expectations. I find it humorous that they occasionally throw those out the window to go with Microsoft - such is life.
I don't lose sleep over big-bad-Microsoft entering into the market and we're sure as hell not going out of business because our "best buddy" (considering we're probably their biggest client) is peeing in the pool. Our win rate vs. BPOS is just fine TYVM... So why don't you "go away" and keep your comments to discussions that you actually know something about. Obviously you don't understand IT services, or you wouldn't have that smug-ass, ignorant attitude.
The funny part is that you sound like most (all but one in fact) of the Microsoft guys I've worked with on BPOS transitions - no f*cking clue what service delivery is or means. Seriously... have we met before?