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Today’s business world demands that technology add value and reduce costs. Online Services from Microsoft can help relieve the burden of managing and maintaining business systems, freeing IT departments to focus on initiatives that can help deliver true competitive advantage. You don’t have to choose between the rich features of an on-premise client and the convenience of a cloud-based browser application. Instead, get the best of both—the high performance and interactivity of clients and servers, and the flexibility and low overhead of Internet applications.
Here's Microsoft's new high level overview of theis selected SaaS offerings. This does not include Live Mesh or SSDS, but does include things like Exchange, SharePoint and Dynamics as online services. Anyone counting out Microsoft should pay attention to the engineering they've put into the cloud in the last two years.
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