Microsoft is planning to make available software that connects the Windows OS to services delivered over the Internet this week. This concept, often referred to as cloud computing, is part of Microsoft’s initiative that will connect the OS with online services. There was talk about cloud computing as something that may be the founding block of the new web (Web 3.0?), as Eric Schmidt said here. This move on Microsoft’s part may in fact put Microsoft back in the game. Microsoft cannot compete directly with its search engine, but with service and OS integration they will be able to keep their hundreds of millions of customers close and away from competitors such as Google or SalesForce.com, both of which offer plenty of software solutions online otherwise offered on desktop computers by Microsoft.

Microsoft’s desktop monopoly has been threatened for a long time by hundreds of companies who offer online services that require nothing more than Internet access and web browsers, while all data is stored on servers. As the industry is moving more towards the “on-demand model”, Microsoft is just in time with this change. Look forward to seeing Windows Live Photo Gallery, Windows Live Mail, Windows Live Messenger 8.5 and Windows Live OneCare Family Safety, as well as Windows Live Writer for blogging, with SkyDrive and FolderShare to join the list very soon as additional services for data storage. As Bill Gates put it “When you think storage, think Windows Live”. Microsoft aims to separate user data and applications from devices on which they are used. Windows Live Service will be available at Live.com soon, so stay tuned!

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