Microsoft announcing Cloud Computing offering

According to Information Week, Microsoft plans to make three important business software offerings -- Exchange, Office Communications, and SharePoint -- available in SaaS versions for business this year, but it's still very much a soft sell: Microsoft senior VP Chris Capossela told InformationWeek that cloud computing isn't going to be cheaper than on-premise software and infrastructure, because "You're going to pay forever. ... It's a subscription, for goodness' sake."

UPDATE
Microsoft says "Focus on SaaS"

Microsoft CEO Ballmer said he believed "the cloud," applications and other computing services offered by vendors, will grow at a faster pace than hosting opportunities for solution providers. And he said Microsoft can't afford to delay its cloud computing efforts while competitors push ahead. The CEO also said Microsoft has plans to re-engineer its server products as it introduces more cloud computing services, but he didn't offer details other than saying the company would "re-invent" its server technology for cloud computing in such areas as scalability, cost and geocaching capabilities.

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