WereKitten, I would say the entirety of MS is moving to a services based infrastructure. Their cloud and Live offerings are the tips of what is to come. As for smart phones, the most popular apps are lightweight frontends consuming web services. These apps are quick and easy to build. Once WinMo 7 is out, all the big a0ps will quickly be available. Zune software will be a big deal as well. It will be the app store, movie store, music store with subscription option, and it directly ties to Xbox Live services as well. MS also has a set of services rolling out for their office suites. They already have a photo service available. So yeah, MS is very ready to have a device and OS with a very nice set of services to tap into and an environment for developers to tap into whatever services they would like to as well.