How does Live Mesh relate to Azure?
In his PDC keynote just now, Ray Ozzie announced the Azure Services Platform. Here's the overview picture:
The Live Services box at left is home to the developer services and APIs that power the Live Mesh platform experience. Think of it this way: Live Mesh is a platform experience that is natively integrated with the Live Services component of the Azure Services Platform – it makes the core functionality of Live Services available to users.
Much more detail on Live Services for developers to come tomorrow!
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[Update: edited for clarity]