Microsoft Watch is reporting that the MSN, Windows and Office teams are working in unison to establish integrated Web services positioned toward small businesses. These IT services will offer additional security, better collaboration and communication, lower costs and improve desktop management. Services are expected to be included in MSN Premium services and as standalone subscriptions.

These services, outlined in Microsoft CEO Steve Ballmer's recent memo to employees is similar to the shelved HailStorm project. HailStorm was the codename for XML-based .NET Web services that were heavily entwined with the Passport user authentication system.