Big news,  the announcement of Windows Azure as the cloud platform for everything that is Microsoft.  If you run it on site you will over time be able to run it in the Cloud.  Taking away the issues of scaling, effectively buying what you need.

Identity Management is a big play,  the ability to sync security from your on site Active Directory with the indentiy in the cloud.  Windows Azure is looking to take away the issue of identity from the developers.

SharePoint Online and running on Windows Azure will open it up to a new market,  not sure when we will see anything though – Ray is saying this will be a conservative roll out.

Sign up for the CTP of Windows Azure