The two companies will develop an interoperable technology network to manage common law enforcement and visa data.
"While the Schengen Agreement allows European citizens to move freely across European Union borders, it also increases opportunities for cross-border crime," said a statement from Microsoft and Unisys.
"The SIS is a network that allows all police forces and consular agents from the 27 Schengen group member states to access and share data and cooperate on law enforcement."
A new version of the SIS technology is currently being adopted to make use of more accurate information to fight terrorism and organised crime.
The VIS is also being introduced in the Schengen area to fight visa shopping and identity fraud.
Implementation of both systems will require all Schengen countries to deploy national information systems connected to the central systems hosted by the European Commission.
"The technology solution we are developing with Microsoft responds to the challenges of Schengen implementation," said RobertoTavano, vice president of homeland security programmes for continental Europe at Unisys.
"It is secure, reliable, time-effective and cost-effective, and adaptable to future evolutions of SIS II and VIS."
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