All of the projects we've touched on so far are real, concrete research that has produced real, concrete results in the lab. That kind of research isn't cheap... which is why it's surprising to learn that projects like these take up only 10% of Microsoft's R&D budget. The rest the $9.6 billion dollar tab is being rung up by the cloud computing division.
Windows 8 already takes steps toward the cloud. Users can sign in with their Windows Live account and access SkyDrive to store and share files. Office 2013 can use this storage to automatically sync files and settings between multiple PCs. This approach works both online and offline and is integrated in the Office interface.
The leaked Xbox document provided another example of how this research will let Microsoft offer new capabilities. It referred to the use of cloud computing to create a console with becomes more powerful over time. This would be accomplished by off-loading some compute tasks to remote servers. A feature like that, if it worked as advertised, would give the company a huge edge in the ongoing console wars.
It's easy to imagine syncing a PC's entire hard drive to the cloud, or apps that can run on multiple versions of Windows through cloud-powered virtualization, or cloud compute "upgrades" that let users temporarily speed up their PC. And if those uses can be imagined, well, it's hard to say what Microsoft might be working on behind closed doors, especially when you watch the video above, which puts images to the company's vision of a productive, connected future.
Microsoft: More innovative than you'd think
Some pundits speak about Microsoft as if it's already dead--a shambling, stuffy company sustained by locked-in legacy software and little else. Microsoft certainly has challenges ahead of it, but as I've outlined today, the company does not have its head stuck in the sand.
Redmond spends more on R&D than Google and Apple combined. Think about that the next time someone tells you Microsoft doesn't have a future.