Microsoft announced today that they are reorganizing and combining the existing Windows Server and Solutions Group and the Windows Azure Group into a new Server & Cloud Division (SCD) that will all be in the Servers and Tools Division, led by Bob Muglia.
Mary Jo Foley has her take on this here, while Joe Wilcox is more skeptical about it here. I think this shows that Microsoft is serious about the vision that it outlined at PDC2009, where it will become easier to integrate on-premises resources with cloud resources, all using Microsoft tools and technologies.
Don’t be confused though. Windows Azure is different than SQL Azure. SQL Azure was already in the Server and Tools Division. I recently wrote a little about SQL Azure here.