But if Microsoft decided to incorporate that feature or that function in its next release, they're toast. About a dozen times a week. Yes, when the company builds an alliance with its end-user customers. Look how Aurum built an alliance with MCI for sales force automation, or how Owens Corning built one with SAP for worldwide finance. Those are the kinds of alliances that will scale and then port to other companies.
Hot products come first.
Then more hot products. Then you are a hot company. And if you can do it long enough, you become a great company. For a company to break into that space means that they have to either dislodge the incumbent or convince the user that his homegrown solution is both too expensive and underpowered. But those users have to be sure of a few things, all of which come under the heading of due diligence.