Tempe, Ariz.-based Limelight already delivers video streams for MSNBC.com, and game content and video downloads for the Xbox Live online game service.
The companies said the deal will improve the performance, scalability and reliability of Microsoft's video, music, games, software and social media services.
Microsoft and Limelight will also cross-license certain technologies, consider joint development projects in the future, and cooperate on improving their respective technology infrastructures.
"Our agreement with Limelight Networks anticipates Internet audiences and content offerings that are orders of magnitude larger than today," said Debra Chrapaty, corporate vice president of Microsoft's global foundation services.
Limelight also provides content delivery network services to customers including MySpace and Akimbo Systems.
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