Microsoft-HP to invest $250 million for cloud computing

NEW DELHI: Global giants Microsoft and Hewlett Packard on Thursday announced a three-year agreement to invest $250 million for cloud computing, an IT architecture which helps companies meet their IT needs without having the expensive infrastructure.

The step will give stiff competition to the likes of IBM and Oracle which have already forayed into this business which helps companies save on cost front.

"This collaboration will allow HP and Microsoft to offer our customers transformative technology that will reduce costs, generate business growth and accelerate innovation," HP chairman and chief executive officer Mark Hurd said in a statement.

The approach is also designed to help customers integrate private or public cloud computing models as part of their business.

With cloud computing, companies tap their data and applications over the Internet or Intranet instead of local servers. It reduces operating cost.

HP and Microsoft will collaborate on the Windows Azure (Microsoft's cloud platform) platform, the statement said.

The new infrastructure-to-application model from HP and Microsoft will target companies of all sizes and while solutions are available immediately, new offerings would be introduced throughout the next three years, the statement said.