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?

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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