According to Dan Farber, Microsoft make its next big bet on 'live software'; a new type of software experience. Gates said, It's about connecting users at the center, with relationships with people, data people care about, applications and all devices coming together to do things for you.
Here are more blogs talking about it: Crunchnotes Microsoft Live Event - My Real Time Notes, Dave Winer http://archive.scripting.com/2005/11/01.