Speaking at the University of Washington’s Paul G. Allen Center for Computer Science & Engineering on Thursday, Microsoft CEO Steve Ballmer reiterated the fact that the software maker is banking heavily on cloud computing – which essentially includes hosting of applications and data in an indefinable assortment of servers that is not overtly exposed to the client user.

Noting that Microsoft’s priorities lie in the cloud, Ballmer delineated five dimensions of cloud computing – creation of opportunities and responsibilities; integration with smarter devices; advancement of learning by helping users to learn, decide, and take action; enhancement of users’ social and professional interactions; and propelling server advances.

Substantiating the reports that Microsoft has been prolifically improving its data center infrastructure to prop up its cloud computing initiatives, Ballmer said: “The cloud fuels Microsoft, and Microsoft fuels the cloud. About 70 percent of the folks that work for us today are either doing something exclusively for the cloud or is inspired to serve the ‘five dimensions.’ A year from now, that will be 90 percent.”

Ballmer further specified that Microsoft is looking to store the maximum possible data in the cloud, rather than on the users’ hard drive - while Microsoft Office 2010, scheduled for a June release, will be optimized for the cloud; the forthcoming Windows Phone 7 Series will also enable smarter handsets specifically designed for the cloud!