Windows Home Server
Thanks to my colleague, Ian, for pointing this one. After some initial rumors, Bill Gates has announced a new product called Windows Home Server which will automatically back up all the data on Vista and XP providing centralized storage and make it available on the Internet. Bill also promised that the Home Server will be easy to setup and the user won't have to even worry about formatting, partitioning,installing, etc as the OS would do all that automatically.
You can get other Microsoft CES related information here.