Begun the AJAX desktop wars have
Not unexpectedly after their recent reorganization, Microsoft yesterday launched two online services Windows Live and Office Live in an apparent effort to take on Google in this space. The desktop looks very similar to the Google personalized home, with the ability to add custom feeds and content. The gadgets have an uncanny resemblance to Mac OS X dashboard widgets :) The VOIP IM is quite interesting.
I won't be surprized if plans include integration with the Windows desktop version in some way allowing MS to cut down on time to market and offer software more and more as a service.
More on this later ...
Michael from TechCrunch who covered the announcement has a detailed review of the services.