Hewlett-Packard (NYSE:HPQ) Lands $400 MIllion Deal with Centrica (CNA)

Hewlett-Packard (NYSE:HPQ) announced it has entered into a $400 million 7-year deal with UK-based Centrica (LSE:CNA) to provide cloud-computing services for them.

HP said its subsidiary, HP Enterprise Services UK Ltd., will deliver services to help Centrica move to "cloud computing," a system of pay-as-you-go access to servers, storage and other computing resources. Instead of Centrica having to operate its own data centers, HP will run the machines on Centrica's behalf in the U.K It will also provide support from HP centers in India, Malaysia and the Philippines, and project and applications services from HP, said an AP report.

The change will help Centrica "respond to market changes to supply gas and electricity to homes and businesses more efficiently," noted Dave Bickerton, Centrica's group chief information officer, in a statement.

Hewlett-Packard closed Monday at $43.63, up $0.95, or 2.23 percent.