This was announced today at WPC in Boston. The demo that Brad did on stage with Steve showed CRM/Office/Windows LIVE all mashed-up!! It was awesome. The key for me is that we are thinking through the partner opportunity every step of the way on this. Everything we do across Dynamics – LIVE or On-Premise will continue to build on the partner model.

During my keynote tomorrow, I will show a vertical solution that was built on CRM 3.0 by a partner/ISV (DRS Systems) for the Phrama industry. This solution is provided as a service through another partner (Streamline Solutions). This is a great example of vertical extensibility and software-as-service (SaS) model coming together. We see this as an increasing trend our goal with Dynamics will be support this model along with LIVE, On-premise.