The juggernaut that is Microsoft growled at PDC 2008. Fierce determination, sheer intelligence still present within Microsoft and questionable leadership continues to move it forward. Microsoft's announcement of Azure provides their answer to Google App Engine, Amazon Web Service, and other cloud computing plays.
Microsoft continues to make the tech landscape exciting and fun to observe. The Empire lives on!... Well, let's wait and see how they execute on Azure over the next few years.
ZDNet's Mary Jo Foley has an excellence overview, "Microsoft’s Azure cloud platform: A guide for the perplexed."
ReadWriteWeb's Richard MacManus has some more commentary here, "Microsoft Azure Aims to Re-define the OS."