Context information consumed and produced by the applications on mobile devices needs to be represented, disseminated, processed and consumed by numerous components in a context-aware system. Significant amounts of context consumption, production and processing takes place on mobile devices and there is limited or no support for collaborative modelling, persistence and processing between device-Cloud ecosystems. In this paper we propose an environment for context processing in a Cloud-based distributed infrastructure that offloads complex context processing from the applications on mobile devices. An experimental analysis of complexity based context-processing categories has been carried out to establish the processing-load boundary. The results demonstrate that the proposed collaborative infrastructure provides significant performance and energy conservation benefits for mobile devices and applications.