Brian Caulfield, writing in Forbes magazine, asks who’s winning the battle between Microsoft and Google? The answer, according to him, is Apple.

Microsoft was originally condemned to be broken up after it was deemed to be a monopoly by a federal judge in November 1999. Bill Gates fought that off in November 2001 on appeal, agreeing to a settlement.

The deal blocked Microsoft from preventing rivals building applications to run on Windows. Steve Jobs has been using that ruling to make Apple a Windows software player ever since.

For starters, Apple can now do all sorts of things with its operating system that are off-limits for Microsoft. In January 2001, it introduced Apple iTunes, software for buying and managing multimedia content that is now baked into every Apple. In January 2003, it introduced a browser, dubbed Safari. In 2005, Apple released a version of its OS X operating system with a slick, built-in search feature dubbed Spotlight. “They’re the only company that actually forced Microsoft off of the operating system because of their integrated Safari browser,” says Rob Enderle, principal analyst at Enderle Group, referring to the latest version of Apple’s OS X software.

Better still, from Apple’s point of view, Microsoft has to keep its doors wide open to whatever Apple product Jobs cares to give away. That’s helped Apple’s iTunes software crush Microsoft’s alternative among users of the Windows operating system. “It’s like giving a glass of ice water to somebody in hell,” quipped Jobs at this month’s D: All Things Digital conference in Carlsbad, Calif.

For Apple, the trick is selling more hardware, not destroying Microsoft’s software monopoly. And Apple can give away its software because that’s not where it makes its money.

Microsoft seems to have jumped out of the frying pan into the fire.

There’s a useful preview of S. E. Slack’s new book : Breakthrough Windows Vista over on the Microsoft website.

The preview is called, 4 Ways to Use Windows Vista at Home.

I’ve been using Windows Vista for several months now, first testing it and then writing my book, Breakthrough Windows Vista. Now I’m running the final version on my computer. … Windows Vista can help you do a lot of things—new tools to help you organize, store, and edit your music and photographs are just two examples of how you can use the new operating system. In this article, though, we’ll discuss four ways that my family and I have already started to take advantage of Windows Vista at home.

The four ways are :

1. Stay in touch with Windows Sidebar
2. Find what you need with Instant Search
3. Get organized with the multi-person Windows Calendar
4. Keep an eye on your kids with Parental Controls.

Read the rest of the piece.

In China, Bill Gates unveils Microsoft’s commitment to help close the digital divide by creating new products and programs that will help bring social and economic opportunity to the estimated 5 billion people who are not yet realizing the benefits of technology.

The press release states : “Company unveils affordable education suite for young people in developing nations and announces plans for 90 new Innovation Centers to promote local software ecosystems.”

“All human beings deserve a chance to achieve their full potential,” said Bill Gates, chairman of Microsoft. “Bringing the benefits of technology to the next 5 billion people will require new products that meet the needs of underserved communities; creative, new business approaches that make technology more relevant, accessible and affordable; and close collaboration between local governments, educational institutions and community organizations.”

The expansion of Unlimited Potential will focus on three areas, Gates said: education, innovation, and jobs and economic opportunity.

Microsoft is running an online Small Business Summit this week : “… a nationwide event that provides small businesses with the tools and information they need to help their business soar”.

I think they’ll try to sell some proprietary software off the back of this. It will be interesting to see which products they are pushing. Windows Vista and Office 2007 are sure to be included.

Of course, Microsoft was a small business once. It began as a startup in a garage by two geeky kids called Bill Gates and Paul Allen. Bill even dropped out of Harvard to do it. That’s the motor of all entrepreneurial activity.

More than 30,000 small-business owners and partners from around the country are expected to participate in this free event held online with a first-day event in Redmond, Washington. The summit features more than 58 sessions covering small-business topics including branding, sales and marketing, security, business efficiency and mobility, and participants have the flexibility to join online from their home or office. In addition, small-business owners can go to their local participating CompUSA store to watch the webcasts, network with peers and have a direct dialogue with Microsoft and CompUSA representatives who understand their unique technology and business needs.

Here’s yesterday’s transcript of keynote remarks by Kevin Turner, Chief Operating Officer, Microsoft Corporation, Microsoft Small Business Summit 2007.