At the end of that Cannes Lions video, Kostas takes a photo and it is immediately uploaded to Windows Live SkyDrive. That ability is going to be key to Windows Phone 7 as well as anyone who uses Office Live Workspace. And combined with Sharepoint, you have some serious cloud computing going on.

In short, we just got word that Office Live Workspace will be combining with SkyDrive to offer that additional 25GB of storage space, as well as further integration with Hotmail and Messenger, allowing seamless manipulation of documents and photos.

The merger is scheduled to occur over the "next few months", no doubt in preparation for Windows Phone 7.

[Thanks, Mark W, for the tip!]