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Microsoft, China Mobile to Partner on Cloud Computing

Dec. 17 (Bloomberg) -- Microsoft Corp. will collaborate with China Mobile Communications Corp., parent of the world’s biggest phone carrier by market value, on developing technologies including cloud computing for Chinese businesses.

Microsoft, the world’s biggest software company, and China Mobile also will partner on information services for businesses, wireless devices, sales and distribution after signing a memorandum of understanding in Beijing today, according to a joint statement sent by e-mail.

The companies are betting that businesses in the world’s fastest-growing major economy will increase spending on computing services and applications accessed through the Internet instead of through individual corporate servers. International Business Machines Corp. and Amazon.com Inc. also are boosting development of the cloud services.

By March, 90 percent of Redmond, Washington-based Microsoft’s engineers will be working on cloud-related products, Chief Executive Officer Steve Ballmer said in October.

State-owned China Mobile Communications owns 74 percent of Hong Kong-listed China Mobile Ltd., which has more than 500 million mobile-phone users.

IBM, based in Armonk, New York, plans to spend $20 billion on acquisitions in the next five years as the world’s biggest computing-services company invests in operations that include cloud computing, Chief Executive Officer Sam Palmisano said in May.

To contact the reporters on this story: Mark Lee in Hong Kong at wlee37@bloomberg.net;

To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net

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