Microsoft has released he CTP1 version of the next version of SQL Server Code named Denali. It is available for download, Quoting Softpedia.com,The first Community Technology Preview of SQL Server Codenamed "Denali" went live on the Microsoft Download Center earlier this week, as Ted Kummert revealed details of the next release of SQL Server at the opening keynote of PASS Summit 2010.
Quoting the http://www.theregister.co.uk/2010/11/09/denali_sql_server_cloud/ article,This version of SQL Server Denali introduces Juneau, what Microsoft is calling a "new-generation" Visual Studio development tool for SQL Server that will bridge the gap between building and deploying apps for on-site and on cloud. There has been a lot of momentum in the cloud space in the last few months. There are 3 major players at this point for the Cloud Initiative, they are Microsoft,Google and Amazon. Microsoft had released its cloud version of the SQL Server Database called SQL Azure close to a year ago and has been refining it ever since. SQL Azure details: http://msdn.microsoft.com/en-us/windowsazure/sqlazure/default.aspx