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Is Adobe going to get crushed by the Big Guy?

The Journal reported today that talks between MSFT and Adobe broke down earlier this week. The issue is whether PDF will become a built-in feature of Microsoft’s office.
This is not a one way assault on Adobe, but a fundamental tension on who will innovate the platform and UI of the industry. Adobe has plans of it’s own that will make Microsoft the equivalent of plumbing. Needed but not discussed.