Yell, the publisher of the Yellow Pages phone directory, has signed an agreement to resell Microsoft cloud tools to small and medium sized businesses.

Yell currently provides print and digital marketing services to over 1.3 million customers across the US, United Kingdom, Spain and Latin America. It is aiming to generate more sales from the digital sector.

Capitalising on the Yahoo! and Microsoft search alliance, Microsoft and Yell will join forces to offer search, mobile and local advertising opportunities to small- and medium-sized businesses, using the Yahoo! and Microsoft Bing search engines to optimise results.

As part of the plan Yell will also sell Microsoft's Office 365 cloud-based productivity suite, Microsoft Dynamics CRM and other products.Mike Pocock, Yell Group CEO, said the deal would "help us launch our local, cloud-based marketplace, serving the growing needs of our customers".