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www.microsoft.com/cloud/

Microsoft might be a little behind, but they are definitely serious about "cloud". Plus, Windows Phone 7 does not look too bad. It might not be as complete as its competitors in features, but it is definitely a strong ground work.

Let's just sit and watch how those folks in Redmond will monetize better from the cloud.

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You're right about this. One thing Azure is not is a direct clone of either AWS or Google App Engine. Azure is different from both, and I believe once they have sorted it through, they will be using their considerable contact list to leverage existing customers onto the Azure platform. One of the key aspects of this is allowing Azure to be run as a private cloud - which I'm sure is the result of a lot of customer feedback and contact.

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