This morning, Microsoft is waking up to a word the company hasn't heard in a long time. Wow ! They call it Surface，the newest competition for the iPad and already even Microsoft's biggest doubters are calling it very cool.

It's well designed, it’s got some cool, colorful accessories. I mean, I am interested in it.

This isn't your father's Windows. It has a sleek touch screen, just like the iPad, and a sleek new case with a built-in kickstand. Unlike the iPad it will run as a full computer and it has a cool foldout cover that turns into a physical keyboard.

Microsoft has not had any product to compete with the iPad which has taken over the market in the last three years. Microsoft announced a product that looks like it can go toe to toe with the iPad.

The stakes are huge in what is now an all-out tablet war between the Titans of Tech.

Google and Amazon already have their own tablets scratching at Apple's heels. But all those shiny Android tablets plus the Kindle Fire still can't compete. The all powerful iPad sold enough last year to nearly double the competition. The iPad is simply the gold standard, built in secret entirely by Apple.

But Microsoft has taken a page straight from the Apple playbook this time, a top secret Hollywood launch for a device built head to toe in-house. 

It looks like they can actually do a really nice job, in terms of design and in terms of components.

The question this morning is can the company that failed in its attempt to catch the iPod and underwhelmed in its chase of the iPhone, get it right this time.

The tablet wars are on and Microsoft believes its magic is back.

For Good Morning America, Neal Karlinsky , ABC News Seattle.