Microsoft, EDS Team Up In The Cloud

EDS and Microsoft (NASDAQ: MSFT) ramped up their push into cloud computing with an initiative this week that seeks to deliver enterprise-class cloud communications and collaboration services to companies around the world.

For Microsoft, the big pay-off will be global access to EDS’ data center capacity that will allow it to deliver the Microsoft Business Productivity Online Suite to enterprise customers. While Microsoft has more than 4,000 solution providers selling its online applications, the EDS deal is huge for Microsoft as it will give it access to data centers in countries where it lacks a presence.

EDS’s payoff will be more integration and maintenance services to enterprises.

Both companies estimate that the total five-year revenue from this partnership will hit $3 billion, said Kevin Torgerson, vice president of service delivery operations at EDS, an HP (NYSE: HPQ) company.

Microsoft and EDS anticipate deploying these services to more than 5 million users.

“This agreement is significant to EDS as it allows us to become Microsoft's largest delivery partner for the Business Productivity Online Suite,” said Torgerson. “Also, the agreement demonstrates to customers the value of the EDS Agility Alliance and further consolidates HP's long-standing relationship with Microsoft.” The EDS Agility Alliance is a coalition of companies that collaborate to design, build and run a market-leading services platform and develop technology-based services.

EDS will integrate the Business Productivity Online Suite, including Microsoft Exchange Online, Microsoft SharePoint Online, Microsoft Office Communications Online and Microsoft Office Live Meeting, into EDS’ workplace service offerings.

Torgeson added that the agreement will enable Microsoft and EDS to provide highly secure and reliable cloud-based productivity solutions to enterprise customers who want to deliver IT innovation to improve total cost of ownership.

He said those cloud-based services will minimize the need for infrastructure investments and can be deployed rapidly, which will reduce the demand on clients’ IT resources.

HP plans to supply server hardware and storage technology to support anticipated demand for the online services business.