Microsoft's Ballmer: "Linux Requires Our Concentrated Focus and Attention" (LinuxWorld.com)

The entire list of areas that he thinks require inovation is a joke.

Engineering may require a bit of inovation, but there is certainly enough in the Linux community. And most of all what it requires is a lot of hard work writing good code.
Manageability is certainly not a problem in Linux.
Compatibility and this comes from the number one company in the world to inovate in incompatibility.
Security is not a question about inovation. It is more a question about keeping it simple, and fixing the bugs as they are found.