The two IT firms say they will build out a new "infrastructure-to-application" model for data centers and enterprises based on tighter integration of their software.
"This agreement represents the industry’s most comprehensive technology stack integration to date — from infrastructure to application — and is intended to substantially improve the customer experience for developing, deploying and managing IT environments," they said.
HP and Microsoft are promising pre-packaged applications, virtualization solutions and integrated management tools.
Under the partnership, the pair will optimize software such as Microsoft Exchange and SQL server for a "machine environment", while key HP business apps such as Business Insight will be integrated with Microsoft System Center and Hyper V-Server.
“This collaboration will allow HP and Microsoft to offer our customers transformative technology that will reduce costs, generate business growth and accelerate innovation," said HP CEO Mark Hurd.