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Microsoft will be spending $9.5 billion in 2010 on research and development. Microsoft will be focusing much of its R&D in “cloud” services, or online computing provided to users from hosted data centers.

The Redmond company is trying to come up with a much to be desired innovatio as they concentrate on changing and reinventing the company into a leader in the cloud.

Microsoft will be coming up with a Windows Phone 7 Series operating system, which will be available on phones later this year. Microsoft is in for a tough battle from other vendors such as Apple, Nokia and other manufacturers using Google’s Android operating system.  The software giant claimed that the mobile OS is a complete overhaul from previous ones and is tightly integrated with other Microsoft products such as its X-box gaming and Zune music products.

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Microsoft Allocates $9.5 Billion On R&D In 2010 |