Microsoft to boost cloud computing

Microsoft Corp aims to increase investment in cloud computing and data centers on China's mainland, the world's biggest Internet and mobile phone market.

The US software giant will spend US$500 million in the current fiscal year on the mainland in research and development, mainly on data centers, network servers and cloud computing, said Zhang Yaqin, Microsoft China's chairman, during the firm's STB (Sever and Tools Business) division's press conference held in Shanghai yesterday.

With an annual revenue of US$19 billion, the STB division is now Microsoft's second-biggest revenue contributor.

Microsoft is seeking local partners and preparing to build data centers on the mainland for cloud computing services that will support Windows 8 and Office 365 scheduled to be released by the end of this year, industry insiders said.

Cloud computing allows users to save, edit, share and process data and files through various devices, including laptops, computers and mobile phones, based on the online "cloud" platform. Other information technology giants, including Apple Inc, Amazon Inc and Google Inc, have also invested heavily to penetrate the sector.