A Microsoft announced last week on the Workspace Team Blog that Windows Live and Office Live will be converged into an integrated set of services at one single destination:
Today, I wanted to share with you some exciting news about Office Live: To simplify and improve the customer experience around our Live services, we’ve made the decision to converge Windows Live and Office Live into an integrated set of services at one single destination. We think that just makes a ton of sense and goes a long way toward giving you a simpler, richer, better service that allows you to do more with one account.
Every day, more and more people are signing up for Office Live Workspace and Office Live Small Business (4 million of you so far!), as well as Windows Live (460 million to date!). With all of these customers you get a lot of feedback, and feedback is something we take very seriously. You’ve been asking us to put the pieces together, and this combination helps us do just that. The Office Live team is going to be hard at work getting this done and evolving our services to better meet your needs.
According to some sources, the new service may be called "Kumo".