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Microsoft wins its biggest cloud computing client

A visitor uses his mobile phone as he walks past the Microsoft booth with a logo for cloud computing software application at the CeBit computer fair in Hanover, March, 6, 2012. REUTERS/Fabrizio Bensch

(Reuters) – Microsoft announced its biggest-ever customer for cloud computing – software that it

hosts on behalf of clients and delivers over the Internet – after winning a contract to provide free services to a major

Indian education body.

A visitor uses his

mobile phone as he walks past the Microsoft booth with a logo for cloud computing software application at the CeBit computer

fair in Hanover, March, 6, 2012. REUTERS/Fabrizio Bensch

Microsoft, which was built

on the sale of expensive software that is installed on individual computers, has been forced by competition from Google and

others to branch out into the fast-growing world of cloud computing.

The U.S. software giant said on Thursday it would

provide its Live@edu communication and collaboration software to more than 7 million students and half a million teachers

through a deal with the All India Council for Technical Education.

The service, which Microsoft is providing for free

as part of its education initiative, includes email, Office Web applications, instant messaging and storage.

For

users, cloud computing is inexpensive and simple, because it removes the need to spend time and money on installing software

and managing servers.

Large government departments are prime targets for vendors such as Microsoft and

Google.

Last June, Microsoft unveiled a revamped online version of its hugely profitable Office software

suite.

(Reporting by Georgina Prodhan, editing by

Jane Baird)

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