Microsoft is “reimagining” cloud and Windows 8 is in on the act. So said CEO Steve Ballmer at the Windows developer conference taking place this week, showcasing the new 8 beta version in front of software developers, hoping to lure a new wave of app builders on to its fledgling OS.

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“All the changes pivot around Windows 8” he declared, referring the new platform designed for tabs, the PC category  Microsoft has badly neglected until now.

He also said ‘8’ was indicative of massive changes over at Microsoft, where connectivity, cloud and platforms form part of its new Apple/Android offensive strategy. 

“If Windows 8 is Windows re-imagined, then it is a first step in the process of re-imagining Microsoft,” and both Intel and ARM are also crucial to the new platform play, the head honcho declared.

Synchronicity will also be another crucial part of new ‘reimagined’ Microsoft where the new platform will fit with Windows Server 8 and Windows Azure cloud services allowing new capabilities and benefits to developers.

“Each Microsoft product group is moving to the cloud as a fundamental business platform.”

The surprise cloud talk given by Ballmer comes as the PC software ace ship is fast sinking as Apple’s iPad and other tabs overtake demand for traditional PC and notebooks.

However, there is still a “long way still to go” he admitted.

Read Why Windows Tablets Could Be The Next Big Thing Here

And he’s not wrong. “542 million people use Windows Live, but Microsoft now needs to find a way to derive some serious revenue from these users, and the best way to accomplish this is through apps,” warns analysts Ovum.

With everyone from Dell to HP talking cloud Microsoft clearly feel the need to jump on the bandwagon quick smart but if the Seattle giant can walk the walk is another matter, and will be answered when the beta version is released soon.

“With over 450 million copies of Windows 7 sold to date, Microsoft must now transition its desktop operating system to the world of tablets and slates. More than two thirds of PCs today are mobile devices (laptops, netbooks, notebooks, tablets and slates), and so it comes as no surprise to see that Microsoft has gone ‘all-in’ with a complete redesign of the Windows interface to cater for touch screens.” Richard Edwards, Ovum analyst says.

But despite the rife competition from established players Apple iOS and Android Honeycomb for tabs, Ballmer appears quite confident of the road ahead and predicts 350 million plus sales of Windows this year alone.

“This year there will be 350 million plus Windows devices sold. No platform other than Windows ships on that many devices.”