"I think probably for many of you who compete in larger enterprises the No. 1 competitor for us and for you is IBM," Ballmer said, according to a Microsoft transcript of the event. "Sometimes it's Oracle but really it's IBM, IBM, IBM, IBM, IBM."
But the head of IBM's software division isn't too concerned.
Steve Mills, a senior vice president who runs what is in effect the world's second-largest software business after Microsoft, said he's still waiting for the threat to materialize.