That came after. Linux wasn't even on 2.6 with its famous stability yet when this kicked off. What you see now is a
result. They softened on open source as they realized it actually has some benefits for a company like Microsoft.
The Microsoft of the Halloween Documents[0] is a different Microsoft from the one we see today that understands open source as something good rather than as a threat, and it started with Microsoft being forced to play nice.
"The cloud" as we understand it didn't exist yet.
[0] https://en.wikipedia.org/wiki/Halloween_documents
