Microsoft and HP Work Together On Cloud Computing

Building on a lengthy partnership, Microsoft Corp and Hewlett-Packard Co., two of the world's biggest tech vendors, announced a new partnership on Wednesday said they will collectively spend $250 million to develop and more tightly integrate their software and hardware offerings for companies looking to move their applications and data online, popularly known as “cloud computing.” This will help business of “all sizes,” as rivals Oracle Corp., International Business Machines Corp. and others transform themselves as one-stop shops for technology, according to HP. Microsoft and Hewlett-Packard in their announcement said this three-year partnership will include an array of openings, all designed to help businesses trim down some of the burdens of establishing and operating data centers, the facilities that houses corporate software and computer equipment. The two anticipate that their joint effort to move businesses towards “cloud computing,” will make it easier and more cost-effective for companies to buy and operate server systems, essentially combining Hewlett-Packard's hardware and Microsoft's software. This would deliver enhanced efficiency and performance of operations, according to the companies. Additionally, it would lower the “cost of ownership, enabling customers to deploy systems with confidence”. Cloud Computing is an Internet based technology where users do not need expertise to understand the infrastructure. “This is all about combining technology and making things as close to “plug and play” as we can,” HP CEO Mark Hurd said during a telephone conference call with Microsoft CEO Steve Ballmer and other executives. Analysts said the alliance is an indispensable part of a larger trend toward consolidation in the commercial tech industry, at a time when many business and government customers are preparing to invest in new technologies such as virtualization and cloud computing.

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