Today Steve Ballmer was on Wall Street giving investment bankers and update on Microsoft's strategic plans. Among the topics discussed was a new version of Windows Server designed for "low cost, low price and low functionality" uses. Ballmer called the new version Windows Foundation Server and refused to give further details.
The Windows Server Team blog is also announcing the new server version where they say they are "very excited about the opportunity this entry-level server will bring to our customers and partners."
Some have already started to speculate about what type of devices will run the "netbook like" Windows Server SKU.