Microsoft CEO Steve Ballmer spend some time at the University of Washington today preaching the Microsoft Cloud Gospel.

According to a recent email and the presentation today, Ballmer says that, “…when it comes to the cloud, we are all in.”

The majority of his “Five Definitions of the Cloud” speech (which is embedded below) dealt with improving the end-user consumer experience when accessing cloud resources; one particular example was interacting with friends and contacts over the internet to watch movies or TV through an Xbox connected to both the internet and a HDTV.

All that was nice and all, but what really caught my eye from the Ballmer visit was the fact that he brought with him one of Microsoft’s data center containers.

Even though the container he brought was a prototype, it was the latest in a series of evolving designs for Microsoft’s containers, also known as an IT-PAC (pre-assembled component). The design is likely to undergo additional refinements as Microsoft continues scouting locations for its next major data center.

“It includes the equivalent of about 10,000 servers,” said Ballmer .”It’s a cool, next-generation concept. We used to have to stick fire hoses into these things to cool them down. (With this) next generation technology, you can put a garden hose in to one of these things to cool down.”