“The launch of Microsoft’s Surface devices previously spurred a wave of innovation among other device manufacturers,” said Downes. “Similarly, Windows 365 Link is expected to ignite advancements in the thin client market, which has seen limited hardware innovation in recent years.”

Windows 365 Link, which the company is touting as the "First Cloud PC devices for Windows 365" will cost $349 (why not $365?) and will be officially available in April. The PC measures 4.72 by 4.72 inches and is 1.18 inches tall, almost half as short and a little smaller as Apple's recently revamped Mac Mini computer .

Microsoft is announcing some new hardware today, but it’s a bit different from a typical Surface device. The Windows 365 Link, which launches in April for $349, is a mini desktop PC that exists exclusively to connect to the Windows 365 cloud service rather than running Windows locally.