Microsoft has launched WebMatrix which is a web development tool that includes everything you need for website development.
An all-inclusive tool, WebMatrix supports Open Source CMS like WordPress, Joomla! and Umbraco.
To get started creating websites, just download and install WebMatrix using the Microsoft Web Platform Installer. You’ll be up and running less than 5 minutes! Once WebMatrix is installed, you can easily install the latest version of free web applications such as WordPress, Joomla!, DotNetNuke and Orchard.
Once you’re up and running, you will find that WebMatrix provides all the tools features you’ll need in a single unified interface. Say good-bye to switching between multiple applications just to perform common web development tasks. With WebMatrix, you’re always just a click away from easily editing your files, managing your database and modifying your server settings.

WebMatrix includes a small, embedded database, SQL Server Compact that can live with your Web site code and content. Use it to start building your next Web site, and when you’re ready to publish, just copy the database file from your computer to any Web server and it will run— no extra installation required. Or you can easily migrate the database and data to SQL Server when you’re ready for high-volume traffic.
You can even run a SEO report, integrate with Bing maps and add photo gallery using LightBox/JS.
What’s interesting is the availability of Web Apps . As far as hosting is concerned, Microsoft has a list of partners (International/Local like Sify) that utilize Microsoft technologies to address your hosting needs.
After Windows Live Writer, this is yet another cool product from Microsoft (which is free!).
Read: How to Install WordPress on your Computer