Microsoft is prepping an update to Windows 8, dubbed Windows Blue. And it's going to include many new features, one of which is improved touch capability as detailed in a leaked video from TechFest 2013.

In a video posted by MSFT Kitchen, Microsoft executives show off the Fresh Paint app at an internal conference. "We're really excited to work on the next version of Windows that's coming, to make sure that we extend touch in even more dramatic fashions," the company's Chief Technical Strategy Officer Eric Rudder says. Microsoft's Charlotte Pereira then comes onstage and makes several references to "Blue" as she demonstrates a new watercolor tool that will be available in the next version of Fresh Paint.

Though Microsoft hasn't publicly said anything about Windows Blue, the company has also mentioned the OS in a job listing. MSFT Kitchen found references to Windows Blue in a number of employee LinkedIn profiles.

The Windows Blue update is expected to roll out this summer or fall, and is the first in Microsoft's new Windows update plan. Instead of rolling out a new operating system every two to five years, Microsoft is speeding up and moving toward yearly Windows upgrades.

But Windows Blue isn't limited to only touch improvements. Several reports indicate that the next version of Windows will see an updated Search Charm, support for smaller (7- and 8-inch) devices, and built-in Internet Explorer 11.

The Search Charm is expected to have fuller search capabilities. Right now, you can search for apps and documents on your computer, and do web searches directly from the search box. As Microsoft continues to enhance Bing search with deeper results, its Windows Search Charm will likely see similar improvements. Web search results could appear directly in the Charms bar. You could also search for items directly inside your apps without having to open them.

Here are a few other easy-to-implement features we'd like to see in the Windows Blue update.

More tile sizes: If Windows Phone can support three tile sizes (small, medium and large), then Windows 8 should absolutely support them, too. The tiles are much larger on Windows 8, so smaller sizes would be easy to tap with a fat finger. It will also make for a more personalized Start Screen, which the Windows 8 Modern UI is all about.

Updated Mail: The Windows 8 Mail app needs some extra power. Simplicity is great, but some basic additions would help it be a more useful tool. Microsoft should add support for POP3 accounts and incorporate features available in Outlook.com like drag and drop. A report from ZDNet suggests that this might come prior to the Windows Blue update.

Ability to use multiple browsers in Modern UI: This is a small request, but it addresses what can become a major annoyance in Windows 8 if you ever use more than one browser. Right now, even if a browser is available as a Windows 8 app, it will only work in the Modern UI environment if it is set as your default browser. If it's not your default browser, then it will open in the desktop. That goes for the built-in IE10 browser and other offerings like Google Chrome.

Boot to desktop: This is one of the most common Windows 8 demands, especially for business users. It should definitely be an option for Windows 8 Pro users, who do most of their work in the desktop environment. It's thoughtful and will make a large number of users happy without much work. But it should absolutely not be an option for Windows RT, where the opposite should be true.

Make it possible to manage everything in Modern UI: Alternatively, if you want to stay in the Modern UI 100 percent of the time, Microsoft should let you stay there 100 percent of the time. Especially since the Modern UI is the future of Windows. Microsoft should have the Task Manager, Windows Explorer and Control Panel available as Modern UI apps. You should be able to change your screen resolution and manage your files without being forced to the desktop.

What do you hope to see in the next version of Windows? Let us know in the comments.