The model that he proposes about how innovation EVOLVES over time is both fascinating, backed up by evidence and intuitive to one’s own experience.
I have been watching - like many - the Microsoft v Google competition growing up over a number of years. In various professional roles in companies, including as a CIO in a Retail Bank, I have deployed Microsoft solutions and enjoyed how Microsoft delivered – while initially functionally weak – tools and environments (SQL server, .Net etc, Visual Studio etc) that in time grew up to become very capable and ubiquitous platforms at significantly lower total costs of ownership, especially in the context of the mainframe hardware platforms that they completed against back then 5 and 10 years ago.
Anyway – to the point. As “the cloud” and “On Demand” gathers pace, that thing that most of associate with dominating search, Google, has creates an on demand offering aimed directly at Office, Exchange and Document/Content sharing and collaboration and many of the messaging and communication processes that enable business. In conceiving it in the cloud and that different paradigm, it may not (yet) have all the bells and whistles of each or any one of the Microsoft Office applications. However the business usefulness of a suite that integrates email AND email processing AND chat AND Voice AND video AND documents AND spreadsheets AND forms into a single space delivers a LOT of productivity and, as much to the point, someone else i.e. Google keeps it up an running. The utility of this full package particularly given the total package deal has now reach critical mass = what this space.
I am not saying that Microsoft will falter the way many great companies have done which Christensen gives as examples – it now has other revenue streams beyond its desktop applications. Rather I am suggesting that Google with the Apps products have delivered a product set worthy of the low cost innovators described by Christensen.
The Innovator's Dilemma: The Revolutionary Book that Will Change the Way You Do Business (Collins Business Essentials)...by Clayton M. Christensen

