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(Reuters) - Hewlett-Packard Co said it plans to invest more than billion (588 million pounds) over the next two years to develop and offer cloud-computing products and services.

The company said it will make its OpenStack-based public cloud services available in 20 data centers over the next 18 months.

OpenStack, a cloud computing project that HP co-founded, provides a free and open-source cloud computing platform for public and private cloud services.

Customer challenges today extend beyond cloud. They include how to manage, control and scale applications in a hybrid environment that spans multiple technology approaches, Martin Fink, executive vice president and chief technology officer, HP, said in a statement.

HP last week inked a deal with Taiwanese contract manufacturer Foxconn Technology Group to make servers aimed at companies that provide cloud computing services.

Cloud services have become increasingly popular among both cash-strapped tech startups and larger companies, which rely on computers owned and operated by the likes of Amazon and Google, instead of buying the equipment themselves.

Amazon.com Inc and Google Inc recently slashed prices of most of their cloud computing services as other companies join the fray.

Cisco Systems Inc laid out plans in March to offer cloud computing services, pledging to spend billion over the next two years, while Microsoft Corp said it will increase its cloud storage offering for business users 40-fold.

(Reporting By Ankush Sharma in Bangalore)


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