Microsoft LightSwitch allows users to create business applications for desktop or cloud use. It uses a three-tier architecture with Silverlight for the presentation tier, .NET Entity Framework and OData for the data tier, and WCF RIA Services for the logic tier. The tutorial demonstrates how to install LightSwitch, create a sample application to track albums with tables and screens, run the application locally, customize the user interface, and export data to Excel. It also discusses using SQL Server Express, SharePoint lists, and Windows Azure as potential data storage options with LightSwitch applications.