Microsoft has some major changes in store for Windows Phone 8, which is the version of the platform currently being referred to by codename "Apollo" (the one scheduled for deployment after the upcoming Tango update). Windows Phone 8, as its name suggests, will also be tied closely to the desktop version of Windows 8 in other ways. They'll be launched closely to each other, and will share integrated ecosystems, thanks to the shared underlying code, components, and user experiences. Windows Phone 8 is part of the "Windows Reimagined" campaign that Microsoft announced for Windows 8. This makes sense as they're companion products in every sense of the word.

According to Belfiore, the overarching theme with with regards to Windows Phone 8 will be choice. Specifically, Apollo will add support for multicore processors, new screen resolutions (a total of four, although actual pixel counts weren't specified), and removable microSD card storage. It's clear that Microsoft is addressing one of the platform's pain points, which is a perceived inability to compete in spec sheet comparisons with the iPhone and Android-based devices. 

NFC radios will also be supported. The "Wallet experience," as Belfiore calls it, will have the capability to be carrier-branded and controlled, either by a secure element on the SIM card or utilizing hardware in the phone itself. In addition, tap-to-share capabilities will reportedly work across multiple platforms, allowing desktops, laptops, tablets, and phones to all share content. In addition to using NFC for contactless payment, Microsoft will also implement a "tap to share" capability, to enable easy sharing of content between phones, desktops, laptops, and tablets.

In a move that will make Windows Phone a better option for enterprise users, Windows Phone 8 will include full device encryption, based on the same technology as desktop Windows' BitLocker encryption. Apollo will sport richer support for Exchange ActiveSync policies, and Systems Center inventorying and management. There will also be greater support for private deployment of custom line-of-business applications.

The Web browser, too, will be in common, with Internet Explorer 10 making its way to the phone. Microsoft also plans to follow in Amazon and Opera's footsteps, using server-side compression and proxying to make webpage loading faster and using 30% less data.

Full compatibility with current Windows Phone applications—expected to number 100,000 by the time Windows Phone 8 is launched—is assured, and there will be added support for native code development in addition to the current Silverlight-based model. Belfiore promises that "most" code will be portable between the desktop and the phone. We would expect this to mean that Metro-style applications written using Windows 8's WinRT will be readily portable.

Key new features of Windows Phone 8 include:
Data Smart. A way to actively save cellular data when possible and avoid "bill shock". Data Smart can be extended by wireless carriers to integrate with their offered data plans.
App-to-App communication. Because Windows Phone 8 apps, like Windows 8 apps, are sandboxed from each other, this new system will provide a Windows 8 contracts-like app-to-app communications capabilities.
Internet Explorer 10 Mobile. Windows Phone 8 will continue to used a highly tuned version of IE which utilizes the latest web technologies.
Shared components with Windows 8. The kernel, multi-core processor support, sensor fusion, security model, network, and video and graphics technologies are all coming to Phone from Windows 8.
Companion experiences with Windows 8. Microsoft is offering a very similar user experience across phone (Windows Phone 8), PC (Windows 8), and TV (Xbox vNext). Pocketnow says there will be a new sync client, and not Zune PC software, though I can't confirm that part, and a set of common cloud services that will work across all three. This includes the ability to sync content (photos, music, movies) between the three screens, phone management from PC or web, shared content between each device, and Xbox LIVE games, entertainment, and more.
SkyDrive integration. Microsoft will make your content available on all of its platforms via SkyDrive.
Skype app. Still a separate but better app and not integrated into OS. Still optional.
NFC and Wallet. Windows Phone 8 will allow users to securely pay and share via NFC and manage an integrated Wallet experience.
Local Scout. Now with personal recommendations.
Camera improvements. New "lens apps" and a far more powerful camera experience.
Business features. Windows Phone 8 will include full-device, hardware accelerated encryption with BitLocker and always-on Secure Boot capabilities, just like Windows 8. Also, it will support additional Exchange ActiveSync policies and System Center configuration settings and inventory capabilities. Businesses will be able to distribute phone apps privately as they can with Windows 8 apps.

It is clear with microsoft's upcoming "Windows Re-imagined", that the common Metro interface, coupled with the tight cross-device integration, unifying the "three screens" (desktop/tablet, phone, TV) with (and via) "the cloud" (using SkyDrive) is going to be a key part of the value of Microsoft's ecosystem in coming years.

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