Microsoft confirmed that it will merge Office Live and Windows Live services. However, it did not mention when the merge will begin.
“Microsoft has made the decision to converge Windows Live and Office Live, that includes Office Live Workspace and Office Live Small Business, into an integrated set of services delivered through one single destination,” said the company in their Workspace Team Blog blog post.
It has been rumored that the company may rename its entire line of online services under the name Kumo which means “cloud”, “ceiling”, or “sea spider” in Japanese.
Source: PC World

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I’m currently experimenting with Windows Office Live Small Business to design my Computer Consulting Business website. It’s cool because it’s free, but it’s lacking in a lot of ways. Hopefully this merge will bring more functionality to the Small Business portion of their services.