Hewlett-Packard Co on Wednesday named Microsoft Corp veteran Bill Veghte to lead its enterprise software business.

Veghte spent two decades at Microsoft, where he was credited with leading the Windows unit back to success with Windows 7 after it lost some credibility with the much-derided Vista operating system.

Veghte left Microsoft in January. His appointment at HP is effective May 17.

Software and solutions is a $3.6 billion annual business for HP, the world's largest technology company by revenue, where last fiscal year's revenue topped $114 billion.

Expanding our software and solutions business is critical to HP, and Bill's broad experience across sales, marketing and engineering will be instrumental in driving this business forward and in strengthening our strategic partnerships with our clients, said Ann Livermore, executive vice president of HP's enterprise business, in a news release.

Shares of Palo Alto, California-based HP rose 0.25 percent to $50.89 in afternoon trading on the New York Stock Exchange.

(Reporting by Gabriel Madway; Editing by Bernard Orr)