In a recent CNBC interview, Microsoft (MSFT 0.87%) founder Bill Gates not only admitted that Apple's (AAPL 0.69%) iPad is the tablet to beat, he explained what both the iPad and Google (GOOGL 0.53%) Android tablets lack that will allow the Microsoft Surface to win: productive capabilities. Gates described most users as frustrated with the lack of a keyboard or the ability to run real software that is a hallmark of most tablets. Not so with the Surface.

In the video below, contributor Doug Ehrman discusses the interview, Gates' perspective, and how it fits into what is developing in the market.