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Video: For Ozzie, Azure is the OS as a service

Microsoft's chief software architect explains that the Windows Azure cloud operating system won't replace desktop Windows--and will give developers new options.

Does a "cloud operating system" replace your desktop or server operating system? How does it work with mobile devices?

Microsoft's Ray Ozzie, the company's chief software architect, tells CNET News' Ina Fried that Windows Azure won't make desktop and server operating systems obsolete. Instead, Azure--which Microsoft launched Monday at its PDC 2008 conference--gives developers more options when deciding where applications should be developed and delivered.

Now playing: Watch this: Ozzie paints Windows Azure

Ultimately, in Microsoft's view, Azure is intended to make it easier for people to manage the devices around them, from PCs and servers to cell phones.

On Tuesday, Microsoft introduced Windows 7, the successor to Windows Vista, and discussed changes coming in Office 14, a new version of the desktop application suite now in development.

PDC 2008 continues on Wednesday with a keynote address from Rick Rashid, senior vice president of Microsoft Research.

Check back throughout the day for continuing coverage.