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]