Is Microsoft Dead?

I read this article on the apparent "death" of Microsoft.

A company that used to be famed for its innovation seems to wobbling along and diversifying unsuccesfully beyond its core business

See the article-http://www.paulgraham.com/microsoft.html

A reaction to the initial article-http://dondodge.typepad.com/the_next_big_thing/2007/04/since_when_does.html