In all this excitement of PDC, cloud computing (Azure) and Live Mesh updates, there is one piece of cloud related news we haven’t told you about.

Microsoft Office will also be moving towards the cloud! We already know about the web storage of Office documents through Office Live Workspace (save, access, and share) but that is going to be expanded with lightweight versions of Microsoft Office Word, Excel, PowerPoint and OneNote. Powered by AJAX and/or Silverlight, they will be available for use in standard Web browsers such ad Internet Explorer, Firefox and Safari. Imagine being able to edit your Office document from your PC, Mobile Phone and the Web!

Click on the thumbnails for larger images

All this will be offered through Office Live, a consumer service with both ad-funded and subscription offerings. For business customers, Office Web applications will be offered as a hosted subscription service and through existing volume licensing agreements. Later on this will also be offered as a part of the Office Suites (Office 14). There will be a private technology preview of the Office Web applications later this year. If you are interested in this, sign up for Office Live Workspace. Of course we’ll keep you updated on this too!

For a first look video, head over to Channel 9.

PressPass – Microsoft to Extend Office to the Browser
Workspace Team Blog – Microsoft extends Office to the browser via Office Live