Plus, specifically for Microsoft, competing doesn't mean an alternative to Windows. It means an alternative to the entire enterprise stack, especially Office & M365.

Google hasn't enticed the big entrenched MS orgs to move over to Workspace, so if Google can't how can a smaller startup ever hope to accomplish that in the face of these behemoths that can just outlast them in a race to the bottom until they are insolvent or get bought by said behemoths?

Microsoft doesn't just sell an OS, or some services, they sell "IT in a box"