Confirming what our community has been saying for years, a Register article references Microsoft business group president Jeff Raikes  as stating that "If they're going to pirate somebody, we want it to be us rather than somebody else".
To summarize the hierarchy of what Microsoft wants.
- Use and pay for their software
- Use but not pay for their software (infringe copyright)
What Microsoft does not want to ever happen is that people switch to competing software, especially legal royalty-free FLOSS software such as Linux, OpenOffice.org or Mozilla.org.
This can be seen with the so-called "piracy statistics" from Microsoft controlled BSA/CAAST which doesn't adequately differentiate between those not paying for BSA member software and those who have switched to royalty-free alternatives.