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Microsoft Windows (Photo : Reuters )

In order to expand its presence in the smartphone industry, Microsoft has closed the deal that will bundle its applications with smartphones running the CyanogenMod operating system, according to Seattle Times.

Cyanogen, the developer of CyanogenMod OS, confirmed on Thursday that its future release will include Microsoft's Office suite as well and the Bing search engine. Some of the major application that will be included in CyanogenMod's future roll out are Skype, Microsoft's cloud storage application OneDrive and the MS Outlook for email services.

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CyanogenMod is based on the open-source Android platform developed by Google. This creates a dilemma when it comes to the incorporation of default applications within the OS. Android is a free-to-use software, which allows other companies to modify its design, but Google require companies to deliberately display its services which includes search and email.

Rumors of a collaboration between Cyanogen and Microsoft started to surface when the former recently launched a funding round. Despite the fact that Microsoft did not end up investing to the company, the recent tie-up between the two could prove otherwise.

Microsoft's market share in the smartphone industry, through its Windows Phone brand, is below three percent. In order to uplift this number, Microsoft started to incorporate its product into Google and Apple devices.

The deal with Cyanogen is not the first time Microsoft sought out other companies to tie-up with. Microsoft has also reached agreement with Dell and Samsung which will preload Office into their tablet devices. Additionally, Samsung Galaxy S6 comes preloaded with Microsoft apps like Office, OneDrive and OneNote, according to PCWorld.