I think that's easier said than done. AFAIK Microsoft gets the real bucks from big business using their stuff. It would have been a very steep hill for Google to climb to compete with Microsoft in the office software market, doesn't matter that they had the web product sooner. You can see the same in reverse with the Windows mobile OS trying to compete with iOS and Android - which they seem to have given up on.
In addition, the difficulties of monetizing websites and software that seem to be doing great when offered for free IMHO shows how much stuff we don't actually need and only like to play with.
> Windows mobile OS trying to compete with iOS and Android - which they seem to have given up on.
Microsoft's strategy is to be cross-platform, which is why it has dozens of apps on iOS and Android, and supports Linux on Azure.
Microsoft's Windows strategy is to be cross-platform, with Windows 10 for "internet of things", phones, tablets, games consoles, all types of PC and servers.
Windows phones didn't sell well enough and the hardware lagged what was needed for Windows 10 (eg Hello and Continuum). However, there's still an ARM/smartphone version of Windows 10, so that door's not closed yet. There are always rumors about a business-oriented Surface phone
Also, Windows 10 was and is free for smartphones, so there's still room for Asian manufacturers to have a go. Even if they don't ship many units, it provides a fall-back if Google gets too aggressive on Android.
In addition, the difficulties of monetizing websites and software that seem to be doing great when offered for free IMHO shows how much stuff we don't actually need and only like to play with.