I just learned that Windows Azure has been announced, presumably at PDC 2008. It's brand new, so visit the site to learn more and download the ctp.

Windows Azure is a cloud services operating system that serves as the development, service hosting, and service management environment for the Azure Services Platform. Windows Azure provides developers with on-demand compute and storage to host and manage web applications on the internet through Microsoft data centers.

Between this and Live Mesh, I feel as though we're in the middle of a huge paradigm shift.