Earlier quoted context omitted.
Yep, except in this case is just one goalpost and everyone wins. Now we can enjoy using software as MS Office and userland from Linux distros in the same machine seamlessly.
This is the "embrace" phase. It also kind of encompasses "extend" by adding hardware support via Windows drivers. This alone is not enough to get to "extinguish" though, so allow me to make a prediction. The next step is fully locked down hardware that requires a signed OS. Linux will not run on it, but MS will pretend to support you by allowing linux apps to run on their kernel. Then, once no hardware will allow you…
In that line of thinking you also want costs of running your own cloud solution as low as possible, so it kind of even makes sense to phase out Windows because all competitors are running their cloud on Linux based systems, where they get all upsides of collaboration on Linux. Where MS trying to run all their stuff on Win pour money into something they could have for free or just also investing a lot less into Linux than what they spend maintaining Win.