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Microsoft officials have used “Cloud OS” as shorthand to refer to the Windows Live Core, or the platform that will power Microsoft’s current and forthcoming datacenter-based family of services.

But what, exactly, is Microsoft’s Cloud OS? Is it an operating system (OS) at all?

Microsoft officials have used the “Cloud OS” nomenclature to refer to Microsoft’s services platform. But more recently, Microsoft — like archrival Google — is starting to attempt to backtrack, claiming that there is no such thing as a Cloud OS.

Obviously, there is something substantial under development by the Microsoft all-star Windows Live Core team. (You don’t put folks like Windows NT father Dave Cutler on a team if it has small ambitions.)

Microsoft officials have declined repeated questions about what the Windows Live Core is, other than to say it is a platform for running current and future services.

Fortunately, other sources in and around the company aren’t quite so gun-shy. Based on various comments by sources who’ve requested anonymity, here’s my best attempt at piecing together Microsoft’s evolving cloud strategy.

First off, from what I am hearing, Cloud OS is a project that Microsoft is planning to deliver in phases. Currently, Microsoft’s expanding family of datacenter servers that power its various Windows Live, Office Live and other online services are running Windows Server.

In the initial phases of its Cloud OS rollout, sources say, Microsoft is looking to build atop Windows Server and create a distributed technology layer, or platform, that will handle the back-end chores required by users, partners and service providers.

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Microsoft, Cloud OS, Cloud DB