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"Microsoft is very worried in the sense that Google has a lot of recognition, momentum and is putting a lot of dollars and effort into their newer business ventures that aren't related to search," McLeish says. "They're walking a very fine line. While they're nervous and worried, they're not nervous and worried enough to dramatically reduce the cost of Office. They clearly have some insight into their customer base and the potential risk they face. They're delicately managing the pricing to protect their margins."
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