In the past Microsoft's approach to standards was simple, and went by the mantra "embrace and extend".
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So what would it mean for Microsoft to try to "embrace and extend" Linux? It might go something like this.

I've been saying this all along. The best way (only?) for MS to eliminate the Linux threat is to 'embrace and extend' it. Just like they did for the browser and Internet technologies abroad (SMTP, etc). The more that they play the game and use their considerable resources to extend it, the more they will disintermediate the Linux cycle.

It's a bit more of a leap of faith, since MS has primarily accumulated power from hiding their IP. But by exposing some of your IP, you'll be able to quickly become the leading and most powerful open source player in the galaxy. This position will undermine almost every other oss project that you have an alternative to, and therefore you will dominate this market as well.

I seriously thought they would've done this by now, but this miscalculation on their part might become the beginning of the end for them.

Opening up challenges to Microsoft