Microsoft unveiled a "cloud" operating system called Azure today. Cloud OS's, according to The New York Times, "manage the relationship between software inside the computer and on the Web, where data and services are increasingly centralized." Basically, where Windows is designed to work with a desktop computer, Azure is geared toward connected appliances like smartphones and notebooks. Microsoft said their next OS will be the beginning of a third era of operating systems, and they should know: DOS and Windows defined operating systems up until now.
Azure was designed over the last three years by Ray Ozzie, Microsoft's principal software architect. Although components of the operating system are widely in use now, the whole thing won't be available commercially for another year.
That's not all from Microsoft. According to the New York Times:
"On Tuesday, Microsoft is expected to give its first lengthy demonstration of its Windows 7 desktop operating system, which is intended to rejuvenate the company’s sputtering consumer business."