in the desktop space. Intel just formed an internal group to smooth the use of Linux on its machines. It also recently hired Sun's "open source diva."

Meanwhile, Sun President Jonathan Shwartz is blogging on the joys of Sun's grid computing strategy, augmented by thin client SunRays, and explaining that recent software company acquisitions are designed to make the grid run Windows. He also mentions a forthcoming Sun/Microsoft announcement that will be "full of good news for customers."

Is the desktop industry riving into an Intel/Linux-and-its-supporters camp versus a Microsoft/Sun bet-on-the-grid camp?

NOTE (11:00 a.m.): Sun's market cap is $12.8 billion. Microsoft has $35 billion in cash and marketable securities.