Microsoft Going Into the Cloud?

Here’s an unexpected article from ReadWriteWeb: Ray Ozzie Announces Windows Azure – “Windows in the Cloud”. I say unexpected not because I thought that Microsoft would never get into cloud computing, but rather because it seems early for them to be moving into the space. Doesn’t Microsoft usually wait for all the problems to be solved by smaller, more nimble firms? Once everything works, then Microsoft moves in (and messes it up, some would add. But those people are just bitter about Vista).

I’m under the impression that it’s still very early days for cloud computing. I know a few individuals who are using Google Docs and similar tools, but it’s pretty much at the individual level. Does anyone know of/work for an organisation that has decided to opt for the cloud in preference to setting up its own internal servers etc?