Cloud computing is the new buzzword for big tech companies across the globe. This new technology is opening up a plethora of business opportunities to tech companies, while helping the end-user streamline their day-to-day workflow without investing much on the hardware upgrade.
Sensing the huge opportunities for growth in this segment, technology majors Hewlett-Packard Company (HPQ) and Microsoft Corporation (MSFT) have entered into a three-year agreement to jointly invest $250.0 million for building an infrastructure model to enhance the application of cloud computing.
Companies are expected to spend around $95.0 billion on cloud computing by 2011, and another $160 billion is expected to be generated from end consumer-applications, like mail and entertainment services offered by tech companies like Google (GOOG), Yahoo (YHOO) and Apple (AAPL).
The collaboration would help Microsoft and H-P to build on their strengths and come out with new solutions that could compete more effectively with offerings from either the Oracle (ORCL)-Sun (JAVA) combination, or from International Business Machines (IBM) and Cisco Systems Inc. (CSCO).
The agreement includes the development of hardware, software and services, which would, in turn, enable business customers to increase their efficiency at lower cost. Although there is severe competition in the cloud computing space, players like Dell Inc. (DELL) and Salesforce.com (CRM) may find it difficult to compete, as the technical efficiency and size of an H-P or Microsoft combine could supercede almost any of its competitors.
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