Microsoft's first cloud appliance, made by Fujitsu, will be ready in August, the two companies said today.

The appliance will run on Microsoft's cloud platform Azure, and it's a way for businesses to use cloud computing software while keeping their data on their own property. Fujitsu is calling it the Global Cloud Platform service, or FGCP/A5.

Last July at Microsoft's Worldwide Partners Conference, Microsoft and Fujitsu, a Japanese tech services company, said they were planning to build an appliance together.

Fujitsu said it has been testing the appliance with 20 companies since April.

Microsoft's Azure is competing with Amazon.com and Salesforce.com in cloud computing. All three companies are competing for business customers to move their software and data to remote data centers accessible via the Internet.

With the Fujitsu appliance, Microsoft is hoping to distinguish itself from its competitors by offering a hybrid cloud product. The appliance uses Microsoft's cloud software, but businesses don't have to transfer their software and data to Microsoft data centers. With Salesforce.com and Amazon.com's cloud products, businesses have to move their software and data to Salesforce.com and Amazon.com's servers.

Here is our Seattle Times story on what Microsoft's strategy means for the cloud computing skyscape.