International Business Machines Corp. (NYSE: IBM), the No. 2 computer company, said it will start providing services in the cloud for consumer electronics makers, starting with Dutch giant Philips Electronics (NYSE: PHG).

In Berlin Friday, IBM said its servers would power what Philips dubs the Philips Smart TV platform in Europe as well as in Brazil and Argentina. While consumers will be able to order entertainment services on demand, Philips will be able to store data about preferences, viewing habits and other valuable information.

The service "reduces the complexity of managing software in our TVs for consumers," said Albert Mombarg, head of Philips Smart TV at TP Vision, which makes the sets.

Shares of IBM, or Armink, N.Y.,  rose $1.26 to $194.63 in late Friday trading as American Depositary Receipts of Philips gained 26 cents to $22.84.