Microsoft launched at PDC a serious effort to build IT into its cloud plans by introducing technologies that help connect existing corporate networks and cloud services to make them look like a single infrastructure.

"Azure is looking at the second wave," says Ray Valdes, an analyst with Gartner. "That wave is what happens after raw infrastructure. When companies start moving real systems to the cloud and those systems are hybrid and they have to connect back in significant ways to legacy environments. It's a big challenge and a big opportunity for Microsoft."

To attack the opportunity, Microsoft introduced projects called Sydney, AppFabric, Next Generation Active Directory, System Center "Cloud", and updates to the .Net Framework that provide bridges between corporate networks and cloud services. While a small portion of the software is available now, the majority will hit beta cycles in 2010.

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