The International Federation of Red Cross and Red Crescent Societies (IFRC) has chosen the Office 365 suite from the world’s largest software maker Microsoft Corp. (MSFT - Analyst Report). The two entities signed a global Enterprise Agreement based on a new Memorandum of Understanding (MoU).

The reason for deploying the Office software is to equip IFRC’s National Societies with advanced technologies such as cloud computing, which is expected to improve the efficiency of their operations and improve resource allocation. It will also facilitate communication and collaboration among its 1 million strong workforce i.e. volunteers and staff members and at the same time reduce IT expenses of the IFRC across the globe.

The American and Danish Red Cross Societies as well as the National Societies in Bangladesh and Namibia have already deployed Office 365 successfully. Other societies are expected to follow suit. Microsoft’s software is enabling these societies to run their daily operations more efficiently.

Microsoft’s Office 365 is a cloud-based, subscription-based software service. It was officially launched in 2011. The new Office comes with the traditional word processing, spreadsheets and email programs.

Microsoft’s Office 365 is gaining traction in the market as it recently launched its online version focusing on touch devices. Further, it is being deployed at the stores of retailers such as J. C. Penney Company Inc. (JCP - Analyst Report) and U.K.-based Tesco as well as government departments such as the Texas Department of Information Resources, which chose the software for inter-departmental activities.

Currently, just like other PC makers, Microsoft is also battling the slump in the PC market caused by the sluggish economy. In addition, the popularity of smartphones and tablets from Apple (AAPL - Analyst Report) and Google (GOOG - Analyst Report) has been cannibalizing PC market sales, further deteriorating the scenario. Whether it can come out of the slump on the back of its new software and OS is a wait-and-see situation.

Microsoft reported revenues, excluding deferrals, of $21.46 billion in the second quarter of fiscal 2013, which was up 34.0% sequentially and 2.7% from last year, in line with our estimates. All except the Entertainment & Devices segment grew both sequentially and from the year-ago quarter.

Microsoft has a Zacks Rank #3 (Hold).