Microsoft is going to make announcements at the PDC next week about cloud computing. They have already announced the support of Windows Server and SQL Server on Amazon's EC2 cloud . This could be a major step as micrsoft tries to make a push in cloud computing.
In my opinion cloud computing is the future of computing, however it might take a while before it catches on for things related to everyday work for common people such as storing all of your data on the cloud, every user request being processed by the cloud and users being confident that the service works.
The major challenges in cloud computing over the next few years would be:
- Good business model
Amazon, IBM and to some extent google have already taken the lead, so its up to microsoft to catch up and porve the point.