Microsoft is trying to move into the cloud as well, as evidenced by "Office Live", and this new offering, called "LiveMesh", confirms their strategy of "software+services." Essentially LiveMesh is a collection of feeds which are synced with other Mesh-enabled devies. What does this mean in real life? Syncing News, File Updates, Friend Status, and Tweets (for example) all through the "cloud".
This is interesting in a nonprofit context because as more and more applications move to the cloud, you no longer need to worry about maintaining email and file servers in-house. Now everyone is relying on the same infrastructure. This is the key - if Merrill Lynch is using the same service your 5 person NPO is using, there is much more motivation for the provider to have 100% uptime. Of course, the downside of this reliance on the web is that reliable broadband access becomes paramount to your day-to-day activities.
I'm excited to see Microsoft making a strong "cloud computing" play because it signals where the corporate technology market is headed, and as nonprofits, we should at least be keeping pace with that, if not staying ahead of the curve!