Microsoft and Hewlett-Packard are expected to invest up to $250 million over the next three years in a joint partnership that will see the two companies collaborate on "dynamic IT solutions."
"The world is accelerating and the movement to modern data center approaches is absolutely accelerating. [And] that really means a movement to a cloud model based upon well-defined and well-integrated virtualization and management approaches," Microsoft CEO Steve Ballmer noted to reporters looking into the partnership.
IBM, Oracle and other major competitors have continued to integrate hardware and software into a consolidated offering, while Microsoft focuses on software and HP remains most dedicated to hardware.
Last year, Oracle acquired hardware and software company Sun Microsystems, though the deal now faces an antitrust investigation courtesy of the European Commission. Oracle, known for its software, purchased Sun to consolidate its software on Sun server launches.
HP and IBM remain locked in an intensely competitive battle -- HP purchased Electronic Data Systems (EDS) two years ago – which has driven competition even higher. Consumers and companies have moved more towards cloud-based computing, which has led to numerous companies offering cloud services. Furthermore, IT companies are utilizing the cloud to create new businesses as PC sales growth dwindles in favor of netbooks.
Until either company announces the type of benefits that we can expect from the partnership, I'm doubtful anything truly beneficial will happen immediately. Both companies said their channel partners could also benefit due to enhanced optimization and increased simplicity, but they haven't listed any specific details yet. I'm under the assumption this deal is expected to help Microsoft and HP customers reduce costs, as they'll be able to purchase HP hardware with Microsoft software at a consolidated price.
Both companies have worked together in the past, but this is one of the most significant efforts to help compete with IT rivals.
