At WPC, Microsoft said that "Fujitsu will deploy Windows Azure platform appliance in Fujitsu datacenters."
Fujitsu will "deliver a comprehensive set of new cloud services and solutions, including system integration, cloud migration and managed services, to customers and independent software vendors (ISVs). Fujitsu will also run its own apps on appliance. New Fujitsu cloud services and solutions based on Azure platform will be available first in Fujitsu's datacenters in Japan, starting at Fujitsu Tatebayashi System Center by end of 2010, following other locations around the world."
In addition to deploying appliance in Fujitsu's datacenters, the partnership also involves both companies, combining their strengths to develop a Fujitsu-branded Azure appliance that customers will be able to purchase & deploy in their own datacenters, using Fujitsu's hardware technology.