Microsoft and HP cuddle up

The pair are already as close as the thickness of a fag paper, but the three year pact between the world's largest software company, and one of the biggest hardware vendors brings them about as close as they could be without a merger.

Both sides plan to invest at least $300 million together in creating and marketing services. According to the Sydney Morning Herald, the pair want their new venture to focus on offering services in such fields as communications and data management.

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