Microsoft Corp. and eBay [NASDAQ: EBAY] today announced that eBay will be one of the first customers of Microsoft’s new Windows Azure platform appliance for cloud computing. The partnership is a significant joint engineering effort that will couple the innovation and power of the Windows Azure platform appliance with the technical excellence of eBay’s platform — to deliver an automated, scalable, cost-effective capacity management solution.

Microsoft also announced the limited production release of the Windows Azure platform appliance, the first turnkey cloud platform for large service providers and enterprises to deploy in their own datacenters. eBay will incorporate the Windows Azure platform appliance into two of its datacenters to further optimize its platform and achieve greater strategic agility and datacenter efficiency.

This partnership follows a successful pilot deployment by eBay of Microsoft’s public Windows Azure platform, which offers eBay the flexibility to deploy certain applications on a public cloud while maintaining the reliability and availability of eBay.com. eBay’s page for iPad listings — http://ipad.ebay.com— is hosted on the public Windows Azure platform.

“Microsoft’s focus on and investment in the Windows Azure platform appliance shows it is committed to world-class cloud computing solutions. eBay has the right blueprint for next-generation software-as-a-service-based applications with our platform’s architecture, scale and reliability, ” said James Barrese, eBay vice president of technology. “Joint engineering on the Windows Azure platform appliance with eBay’s massive, high-volume systems allows Microsoft to demonstrate its leadership in this space and helps eBay improve our user experience through a flexible, scalable and cost-effective solution.”

The Windows Azure platform appliance consists of Windows Azure, Microsoft SQL Azure and a Microsoft-specified configuration of network, storage and server hardware. The appliance is optimized for scale out applications and datacenter efficiency across hundreds to tens of thousands of servers.

“eBay has one of the world’s largest ecommerce platforms, and we believe the Windows Azure platform appliance provides the scalability, automation, datacenter efficiency and low cost of operations that eBay requires to meet the needs of its customers worldwide, ” said Bob Muglia, president of Server and Tools Business, Microsoft.

eBay and Microsoft will deploy the Windows Azure platform appliance this year.About eBay Inc.

Founded in 1995 in San Jose, Calif., eBay Inc. (NASDAQ:EBAY) connects millions of buyers and sellers globally on a daily basis through eBay, the world’s largest online marketplace, and PayPal, which enables individuals and businesses to securely, easily and quickly send and receive online payments. We also reach millions through specialized marketplaces such as StubHub, the world’s largest ticket marketplace, and eBay Classifieds sites, which together have a presence in more than 1,000 cities around the world. For more information about the company and our global portfolio of online brands, visit www.ebayinc.com.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

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