If there was any lingering doubt about where Microsoft sees the future (online services and advertising), then that got erased this morning with news that Microsoft is bidding to acquire Yahoo for $45 billion. This news comes after recent word of layoffs at Yahoo. Here’s the press release on the news. Of course this is just the beginning and who knows what it means for existing Microsoft services like Microsoft Live. And for those that like to follow the crazy competition that goes on by companies with lots of cash there is already speculation that Google might try to outbid Microsoft. It will be more than interesting to see how this plays out.