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The tech giants plan to spend $250 million over three years in a partnership to deliver cloud computing products and services to businesses.
Some of the biggest companies in computing are forging new alliances in hopes that together they'll benefit from a rebound in technology spending. A big area of demand is the emerging field of cloud computing, the delivery of software and other computing tasks via the Internet rather than on in-house machines.
By 2011, businesses may spend $95 billion on cloud computing, or about 60% of the total, according to Merrill Lynch estimates. "The cloud is the driving force behind this deal," Microsoft CEO Steve Ballmer said on the conference call with Hurd. The rest of the $160 billion is expected to come from consumer-focused applications, including e-mail and entertainment services offered by companies including Google (GOOG), Yahoo (YHOO), and Apple (AAPL).
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