There has long been a degree of distrust on Microsoft's virtual monopoly of the operating space and critics are now predicting a backlash against Windows, driven by a number of factors. Both Apple and Linux are becoming far more popular than before, suddenly presenting Microsoft with credible competition in the space. However, the real threat right now is on how people are beginning to use their computers, moving from desktop based software to the use of 'Cloud' computing where software runs on remote servers.

Three years ago, Microsoft released its Vista operating system to a hugely underwhelming response. A difficult to install system that left users unable to use some current hardware and software already installed, Vista seriously undermined Microsoft's position as the market leader.

This now puts Windows 7 as Microsoft's opportunity to either redeem its position or potentially, to damage it even further. And the initial signs are promising with early tester reporting it to be fast, reliable, secure and easy to use. Unlike Vista, Windows 7 is designed to work with everyone and not just carefully selected partners. Rather than looking at its operating system in isolation, Windows 7 should work seamlessly with other non-Microsoft applications.

It all sounds good so far, but is this the right time to be launching an operating system? The world is still fighting to get out of recession and companies and individuals being asked to dip into their pockets at this time for an operating system could be foolhardy. Microsoft is relying on people using improved technology to help lead them out of recession and see the release of Windows 7 leading to a bounce in its own fortunes.

Change in the digital world also provides them with hope as users are becoming more mobile with their computers, something older systems just aren't built for. Microsoft itself will stop supporting Windows XP in 2014, forcing people to upgrade if they want to stay with Windows.

From a competitive point of view, Google has delayed the release of its operating system, while Apple has not had the impact it hoped for on its Snow Leopard system. This means Microsoft can potentially steal a march with Windows 7. This alone will not overcome the long term threats to Microsoft's business model. People will start using more and more browser-based cloud applications and not have to use an operating system at all.

While the signs are that Windows 7 will be a success, it may be the last time Microsoft can dominate the space.