CircleID

If Microsoft also aims to consolidate their customers' domain names from their MelbourneIT reseller account into their own registrar system, they need not look any further than domain registrar Registerfly's experiences with their former registrar partner Enom on how not to go about it. :)

Currently they're offering .com domain names for free via officelive. But make sure to read the fine prints before biting, of course. ;)

I think it is unlikely that Microsoft will be competing in the general registrar space. This looks like a move to enable them to add value to Office Live and more efficiently register domains for internal use and testing, as well as to mine the registry databases, similar to what Google has done since becoming a registrar.