Windows Live integration is going to be HUGE

An article on CNET the other day described Microsoft's announcement of an SDK that would allow deskop applications with Windows Live ID. Richard MacManus commented shortly afterwards about how big this for Microsoft:

This strategy will define Microsoft's future, because in many ways it's the bridge between the old world (desktop software and the Windows OS) and the new world in which Google is a pioneer (web apps)

I totally agree-- Microsoft is one of the few companies with the reach to be able to take the web application mainstream. Just the Live ID API has potential to be the ultimate single sign-on solution: imagine being signed on to all of the windows live services just by starting a user session in Windows. Users may never have to sign in more than once again, and Microsoft would have an instant audience for its Live services.

This has implications for the online storage space as well: MSFT could automatically give all its users a small Live Drive account, sign-on to it on start up, and integrate it with Windows Explorer. Depending on how well this is executed, it could totally change the game for the many online storage services out there (including Openomy).

It will also be interesting to see is how tight the integration will be: Microsoft has gotten into a lot of trouble before by integrating IE and Windows Media Player into the OS. Successfully integrating the desktop with Windows Live would make life a little more difficult for many web startups and reignite antitrust concerns. With all the changes going on at MSFT recently, I'm really looking forward to seeing how this one plays out.