Hm, a lot of opinions here, ranging in insight. This one was the most perceptive, in my opinion: It’s not as if these companies are gearing up to produce automobiles. The engineering teams for any of these products are, at most, 20 to 30 people — immaterial for Microsoft, which has 90,000 or so employees, and Google, which has 20,000. Nor are all of Google’s products even guaranteed to ship, being as they are in that…
The problem with this statement is that Cringely has no way of knowing this and the facts publicly available contradict his account. Just to give one example look at Steve Ballmer and Bing. Unless he's flat out lying he's going to spend 5% to 10% of Microsoft's operating income on Bing ( http://blog.seattlepi.com/microsoft/archives/171648.asp ). That's not exactly immaterial as Cringely claims.
They're probably blowing piles of money on datacenters too, but they'd be doing that anyway even if the Bing thing never happened. They see Google doing it and feel left out!