Red Hat (NYSE: RHT) and Science Applications International Corporation (NYSE: SAI) are teaming up to take the Pentagon into the realm of “cloud computing.”

The two firms said Monday they would develop and demonstrate jointly cloud solutions based on open source. The effort will take place at SAIC’s lab in North Charleston, S.C.

Financial terms of the agreement were not disclosed.

SAIC recently opened the Advanced Computer Engineering lab.

“SAIC’s ACE Laboratory will serve as the foundation for an open community, providing an environment to maximize public and private cooperation focused on solving complex operational and computational problems,” the companies said in a statement. “The laboratory provides physical and virtual environments for hands-on collaboration between SAIC, other contractors, small businesses, information technology vendors and government employees. Through emerging technology exploration and innovative solution demonstration, the ACE Laboratory aims to foster collaboration and information sharing, promote cloud computing best practices and deliver low-cost, enterprise-scale “create once, optimally manage and reuse often” solutions.”

For the complete announcement, read here.

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