Check out Scobles response to the CEO of Adobe, on why he shouldn't lose sleep over Microsoft.  In it he talks about how Adobe has always embraced new technology and how Adobe has been bold in the past in taking on industry leaders such as Apple and Microsoft. 

Let's go back to 1984: Did Warnock and Geschke worry about what Apple would do to them? After all, back then Apple was far bigger than Adobe (and, if you talk to pioneers like Dave Winer, they were scary back then too). I watched Adobe back then. Adobe came out with Postscript, a ton of fonts, and later Illustrator. Served a new market that hadn't been served. Took advantage of new trends and new platforms from Apple.

Jump forward to 1995. Did Adobe worry about Apple (which was still bigger and still controlled its major platform) or Microsoft (which was bigger yet)? I don't know, but the 1990s saw Adobe come out with Photoshop, Acrobat, Indesign, and tons of other stuff that served markets that Apple and Microsoft simply didn't see.

Talk about a feel good letter.

Bruce, how can Microsoft work with you to help you find new unserved markets? How can we work with you to rebuild your existing apps to take advantage of the new platform technologies in Longhorn? How can we help you come up with a "killer app" for Longhorn? That's what I'm losing sleep about.