In addition to its investment, the Redmond, Wash., software giant will collaborate with InfoLibria on new technology and integration with the Windows .NET platform -- a new operating system designed to erase the boundaries between applications and the Internet

"(The deal) ensures that we are able to offer customers the industry's most secure, cost effective and high performance content distribution and delivery products," said Ian Yates, InfoLibria's president and CEO.

Using InfoLibria's products, service providers and carriers, can use Internet protocol (IP) networks to deliver customizable content and applications, such as live, on-demand, Web-based communications and collaboration.

"InfoLibria has been pioneering the development of edge services using Windows-based technology for years," said Dave Fester, a Microsoft general manager. " general manager. "Their development expertise and innovative approach to this space offers a critical contribution to the next-generation of streaming media delivery".

The capital infusion from Microsoft comes six months after InfoLibria banked $41 million in financing round led by Mellon Ventures.