Microsoft today confirmed that it's moving its Live Services and Live Mesh teams into the Windows Live organization, reporting to Windows chief Steven Sinofsky. The groups are involved in a key part of Microsoft's strategy -- technologies for synchronizing and sharing data between traditional software programs and online services, and among different computers and devices.

Previously, the groups reported up through Ray Ozzie, Microsoft's chief software architect. (Mary Jo Foley reported the news earlier today.) Microsoft said in a statement that the change will "further its commitment to deliver end-users a great set of Windows Live offerings and support all of the applications and services that use the Live Services Platform."

What does that mean, exactly?

For one thing, it looks like the company is aiming to incorporate those synchronization and sharing technologies more tightly into the next wave of "Windows Live Essentials" client applications, said Matt Rosoff, an analyst at Kirkland-based Directions on Microsoft. The next version of Windows Live Mail, for example, could come with Live Mesh-related features that let people easily synchronize their calendar entries across multiple computers and devices.

In terms of timing, it would make sense for the company to try to roll all of this out when Windows 7 debuts, presumably later this year.

"It’s a nice goal," Rosoff said. "We’ll see if they get there. I’m a little skeptical."

Live Services are part of the broader Azure cloud-computing initiative that Microsoft announced last year. They let Web developers build online applications that work with data users store via the core Windows Live programs. For example, an application could tap into a user's Windows Live Contacts address book, with the user's authorization. Live Mesh is a service for synchronizing data across devices and computers.

As part of the changes, Microsoft said David Treadwell, the Live Services Platform corporate vice president, will now report to Sinofsky.