Microsoft has demonstrated a touch-based user interface that will debut as part of Windows 7, the next version of its desktop operating system. The company said it believes that touch technology will become more mainstream in future along with deployments of touch-enabled PCs.

At the Wall Street Journal’s All Things Digital conference last week, Microsoft executives, including chairman, Bill Gates, and chief executive, Steve Ballmer showcased a multi-touch user interface that enables gesture-driven input and control of applications.

Not only will Windows 7 support touch-enabled hardware, but the user interface is designed to make touch a natural part of the user experience, even on the smallest laptops, according to Microsoft. The company said Microsoft it is working closely with hardware and software vendors to bring the best touch experience to Windows PCs.

Windows 7 itself is still officially due in 2010, three years after the official launch of Windows Vista, but Microsoft is keeping a tight lid on other features and capabilities that the platform may support.

Microsoft has confirmed that it would not introduce a new operating system kernel in Windows 7, instead basing it on technologies introduced in Vista, particularly subsystems such as graphics, audio, and storage.