Microsoft's Business Productivity Online Suite has made available the bundled products of Exchange, Sharepoint, and Live Meeting, hosted by Microsoft itself, for more than a year now. The $120 per year, per user fee has seemed a little steep, though, considering those same solutions have been available from third parties who have much more experience and for much less money than Microsoft itself. The target market of BPOS, and most of its uptake, has been with larger organizations (many of which were probably able to negotiate much better deals in private, anyway).
The market most open to the hosted services offering, though, and representing the larger total number of seats, is the SMB market. Microsoft watcher Mary Jo Foley
reports that Redmond is finally getting around to rolling out the SMB version of BPOS, due sometime in the second half of 2010.
Pricing isn't available yet, nor is a better long-term perspective on where Microsoft is going with the whole concept. Despite Steve Ballmer's assertion that the company is "all in" on cloud computing, it's not clear that Microsoft really realizes this may be where their bread is buttered for the foreseeable future... and if they don't, then despite their apparently privileged position as the designer of the software in question, you may still be better off buying the same services from smaller third-party hosting companies who have enough skin in the Software as a Service game to encourage stability and reliability.