Microsoft & HP to invest $250 m for computing

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.

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.