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It’ll be cheaper to put apps in the cloud than to run them on your own servers: “It’s an inevitable business. The higher levels in the app stack require that this infrastructure exists, and the margins are probably going to be higher in the stack than they are down at the bottom … Somebody who is selling [business] apps is going to build in, more than likely, the underlying utility costs within their higher-level service. It will still be cheaper to do those things on a service infrastructure than it is on a server infrastructure.” Taken together, these statements — by the company’s chief strategy officer, no less — add up to a huge strategic shift under way within Microsoft. They suggest that, in five years’ time, the company will be unrecognizable compared to today, with services revenues taking a significant share while licence revenues dwindle.

We're going to talk about dynamic documents. That is to say, documents that have form and structure and that are things end-users are very familiar with and have been using for generations, but with a twist. That's the ability to bring content and data, on a dynamic lifecycle basis, in and out of these documents in a managed way. That’s one area.The second area is service-oriented architecture (SOA), the means to automate and reuse assets across multiple application sets and data sets in a large complex organization.We're seeing these two areas come together. Structured documents and the lifecycle around structured authoring tools come together to provide an end-point for the assets and resources managed through an SOA, but also providing a two-way street, where the information and data that comes in through end-users can be reused back in the SOA to combine with other assets for business process benefits.

Thus far we’ve been talking about the notion of unstructured content as a target source to SOA-based applications, but you can also think about this from the perspective of the end application itself -- the document as the endpoint, providing a framework for bringing together structured data, transactional data, relational data, as well as unstructured content, into a single document that comes to life.Let me back up and give you a little context on this. You mentioned the various documents that line workers, for example, need to utilize and consume as the basis for their jobs. Documents have unique value. Documents are portable. You can download a document locally, attach it to an email, associate it with a workflow, and share it into a team room. Documents are persistent. They exist over a period of time, and they provide very rich context. They're how you bring together disparate pieces of information into a cohesive context that people can understand.

Live Mesh brings that to life, as product director Mike Zintel explains on the brand new Live Mesh blog: “[It] blend[s] the web, Windows and other computing endpoints in a way that preserves the ‘it just works’ feel of the web with seamless integration into my common workflows. The coolest thing about Live Mesh is how it smashes the abrupt mental switch that I have to make today as I move between being ‘on the web’ and ‘in an application’.” At first glance, that may seem a perfectly reasonable and innocuous statement — and indeed it is, if you take a Web-centric view of the world — but coming out of Microsoft, it’s dynamite. Instead of seeing the Web as an extension of the desktop, it includes the desktop as part of the continuum of the Web. Where then does the application sit? Not on the desktop, or on any identifiable server machine, but simply in the mesh. In other words, it becomes a service, capable of running anywhere in the cloud, including on the desktop.

“The core philosophy is to make it easy to manage information in a world where people have multiple computing experiences (i.e. PCs and applications, web sites, phones, video games, music and video devices) that they use in the context of different communities (i.e. myself, family, work, organizations) …” “At the core of Mesh is [the] concept of a customer’s mesh, or collection of devices, applications and data that an individual owns or regularly uses.