Microsoft is working with a number of computer manufacturers to offer new cloud computing services as it bids to stamp its dominance on the burgeoning market. The firm has confirmed deals to let PC makers including Fujitsu, Dell and HP install Microsoft's Windows Azure cloud computing system on their own data centres. In return, Microsoft will gain access to the PC vendors' customer base, which includes large corporations and government agencies.
Microsoft is also planning a new cloud computing product called Windows Azure Platform Appliance for business customers. The product includes Microsoft's Azure cloud computing system as well as database software and hardware and enables Azure to run on a firm's own data centres rather having to use Microsoft's servers. eBay has already said it plans to use the Azure platform in two of its data centres, having tested the system for its iPad auction listings.
The deals are part of an increasing focus at Microsoft on cloud computing. The firm faces growing competition from the likes of Google, which offers its own cloud-computing systems and has already signed up some big customers including Rentokil and LA City Council. Speaking at the Worldwide Partner Conference in Washington, Microsoft CEO Steve Ballmer reiterated that the firm is "all in" for web-based services and platforms. "If you don't want to move to the cloud, we're not your folks," he says.
Cloud computing has a number of advantages over traditional computing. It can cut hardware costs, energy use and staff levels by doing away with in-house data centres. However, so far relatively few large corporations and government agencies have switched to cloud computing due to concerns over security and data protection. Microsoft is hoping that by teaming up with industry leaders such as Fujitsu and offering firms the option to install cloud computing software on their own servers, companies will be more likely to make the leap to the new technology.