Mumbai: Larsen & Toubro (L&T) said on Monday it has signed a Memorandum of Understanding (MoU) with Microsoft for the development of cloud computing and infrastructure services for regulated sector customers.

“In line with emerging regulations, L&T and Microsoft will co-engage with a defined set of large customers in regulated sectors to develop architectures and roadmaps to modernise their traditional data centres to potentially hybrid models and advance their digital transformation goals,” L&T said in a statement.

As per the MoU, the two companies have agreed to set up a joint governance group to define future platform designs, investments, and commercial/business models to service the regulated sectors’ emerging technology requirements.

Senior leadership teams of both the organisations will be engaged collectively on this as the association evolves, it said.

“India is at the cusp of enormous cloud adoption, as innovation, scale and agility become critical determinants for enterprises grow and compete globally. Our partnership with Microsoft aims to accelerate hybrid cloud transition for large customers in regulated sectors, while maintaining the highest benchmarks of compliance, security, and governance,” said S N Subrahmanyan, CEO & MD of Larsen & Toubro.

“As enablers of India’s digital transformation vision, our ambition is to support organizations in their journey to become digital natives and future-ready businesses,” Subrahmanyan said in the statement.

As per the present norms, the MoU will focus on engaging customers in the Indian jurisdiction, with the potential to extend this partnership to other jurisdictions in the future, as agreed between the two companies. At an appropriate time, L&T and Microsoft will consider possible partnership structures to continue to collaborate for the performance of this MoU.

Talking about the MoU, Anant Maheshwari, President, Microsoft India, said, “Microsoft is excited to collaborate with L&T to support the public sector and the other regulated industries as they seek to accelerate digital services to benefit all parts of India. This partnership will enable development of a scalable cloud infrastructure model for these sectors to accelerate their digital innovation, in alignment with the data location and security needs of India.”