SAP, Microsoft draw battle lines: M$ is starting the battle with SAP for enterprise applications. The article doesn’t mention that SAP depends on IE (their software runs pretty much only on IE), and the advantage that that gives M$. SAP’s software is stretching the limits of browser capabilities (they have drag and drop with DHTML and such) – this is going to be an obvious advantage for M$ when they start developing these apps: they can build whatever functionality they want straight in IE. They can also achieve close integration with Office.