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Microsoft will develop and market cloud-computing products in China with a Chinese partner, a pattern that the software giant could use as a model in other emerging markets, an executive said on Tuesday.

In a joint event in Beijing, Microsoft Corp. and China's domestic Linux operating system provider, China Standard Software Co. Ltd. (CS2C), signed an agreement to jointly develop, market and sell solutions for the booming cloud-computing market in China.

The two companies did not disclose financial terms of their arrangement.

Microsoft said that the primary goal of the agreement is to provide public and private cloud solutions to a diverse array of industries through a rich partner ecosystem. The mixed source solutions stemming from this collaboration will be built on Microsoft's Hyper-V Open Cloud architecture and will include support to run CS2C NeoKylin Linux Server products. While establishing market and technology collaboration, the two companies have also signed a mutually beneficial customer legal covenant agreement.

Microsoft and CS2C have also pledged to sponsor a joint virtual technology lab in Beijing for solution development and testing of cloud solutions that will allow their customers to move to virtualization and a cloud-based IT infrastructure. The lab will focus on the certification of CS2C NeoKylin Operating System on Windows Server 2008 R2 with Hyper-V, creating Microsoft Systems Center management packs for CS2C NeoKylin Operating System application workloads, and incorporating support for CS2C NeoKylin Operating System within the Hyper-V Cloud architecture.

As part of the collaboration, CS2C will also take part in the Interop Vendor Alliance, an established community of software and hardware vendors that have been working together to enhance interoperability with Microsoft systems.