Say goodbye to Windows Mobile (many will say good riddance). Microsoft tossed the whole thing in the Atlantic with this week’s introduction of Windows Phone Series 7.

Despite its unfortunate name this new mobile operating system may actually hold some promise for resurrecting Microsoft in the mobile space.  For a company often criticized for it’s failure to innovate, Microsoft looks like it really got it this time.

However, Redmond may have to fight the too-little-too-late feeling from many consumers. Apple, Google and Palm all have mature operating systems with a couple of years’ worth head start. Android releases a new device hourly and has won the hearts of most major phone manufacturers an many users with a deepening collection of apps. Palm has developed a core group of followers. And we don’t even need to go into Apple’s success.

However, I still think there is hope for Microsoft in mobile by playing up to how our business and personal lives intersect. Steve Ballmer talked up this very idea at Mobile World Congress.  I know plenty of people who carry a BlackBerry for work but then an iPhone for personal use. The lines between work and personal contacts and tasks are often blurry, so having a device that can be your music player, Internet device, office contacts and documents (and if you’re into it, your Xbox Live friends) might be attractive.

Then again, many people already have such a device. They call it an iPhone. And even with some of its glaring omissions, it still offers the best mobile experience – with some new functionality likely coming before the new Windows phones even hit the market late this year.

While it is encouraging to see Microsoft take bold leaps forward, it’s time to be a major player in the mobile space may be winnowing. This year will tell us if this bold move will succeed.