Hummer Winblad's Ann Winblad interviewed Microsoft CEO Steve Ballmer this evening at a Churchill Club event in Silicon Valley. The live video stream is embedded below. The early part of the discussion focused on Microsoft's views on web based software offerings from companies like Google and Salesforce. Ballmer says apps don't really belong solely on the client or in the cloud, but rather a "software plus services" approach that distributes processing and storage across the cloud and the local machine or device. This hybrid approach, known as Windows Live Wave 3 , is being rolled out now and major announcements will be made at the upcoming Microsoft PDC conference in Los Angeles. Windows 7 will also be available for the first time at the PDC.