Is Desktop application software dead?

Google would like us to think nearly all of the software will soon be used online. Microsoft would like us to think desktop applications will still rule. As in many other issues, the truth will probably lie somewhere in between. One thing is for sure, Microsoft seems really threatened, not by the competition but with some of it's historical inability to understand the cloud. On the other side they do understand the enterprise world like no many, and most of the enterprises won't embrace online operations as easy as individuals.

Bottom line is: sorry Google, they just won't. And sorry, Microsoft, they'll definitely have to change.