Source: DNA
The personal computer is getting smaller and smaller to conform to the tastes of the mobile generation --- even as the mobile phone threatens to do most of what computers do. Ravi Venkatesan, chairman of Microsoft India, speaks about how Microsoft is reinventing itself to address the needs of more and more of these mobile denizens.
Excerpts from an interview:
Microsoft talks of taking computing to masses in India, but an Office licence still costs about a fourth of the price of a netbook, which is Rs 20,000.Some analysts say this is the single-biggest reason why piracy thrives and impacts Microsoft in India and China. Considering the milieu, how is Microsoft readying for the next big haul of customers in India, also given that you have additional challenges in the form of open source-based operating systems, applications and Google to take care of?
Contrary to popular belief, piracy is not a price issue. The cheapest and most readily available software programs are pirated as much as the more expensive ones. Or, look at the music industry: audio cassettes and compact discs are not prohibitively expensive today, and yet infringement of copyright continues. The cost of software products is reflective of the R&D that is required to develop the product for sale --- not of the CD that it is burnt onto. We believe that the solution to the problem lies in cultivating respect for Intellectual Property Rights through education, empowerment and in some cases enforcement.
Pirated software does not benefit anyone, definitely not the buyer. A study Microsoft did found that business can lose up to Rs 1.5 lakh a month due to pirated software. According to the same study, businesses using pirated Windows XP face system failures four times a year on an average and each failure can cause two hours of downtime. Taking the opportunity cost of each system failure at about Rs 65,000 per computer per month --- which is double that of genuine XP users ---- doing the maths is simple enough.
I believe access to original software is one of the most critical elements to reducing piracy in India, which is why we have made software available online and over phone. Two, for sectors like education, we have extremely affordable pricing: our entire stack is available for 3 dollars for any government-supported PC scheme. Also, the global 2-3% share of open source clearly speaks for itself.
Mobile phones have already stolen a march over PCs on usability and user-friendliness. With 3G and other developments, mobiles phones are expected to be more pervasive than PCs. How does Microsoft deal with this?
In today's day and age, people want to be connected all the time. The device could be a PC, mobile, a television or an xBox. In India, the reality is that the mobile has become the most pervasive device, be it to stay connected with friends, access information, or take photographs.
It is not a challenge but an opportunity for us from a Windows Mobile perspective. Windows Mobile devices bring in the choice of mobility, with a PC-like familiar user interface. In a way, Windows phones are an extension of the PC environment with a starting price point of Rs 10,000.
We believe that consumers will live their lives across three primary screens --- PC, mobile and television, with gaming consoles becoming the fourth option for certain user segments.
Would you look at hand-holding telcos and handset makers to bundle application and services (Windows Mobile lags Symbian in mobile operating systems). Does Microsoft have a scope and opportunity on the user-friendliness side of mobile handsets?
Since the launch of Windows Mobile in India three years ago, the platform has experienced rapid growth and is today a leading player with 10.7% share of the smartphone market in India according to the IDC APAC Quarterly Handheld Tracker. In terms of partnerships, Microsoft works the broadest set of partners in the hardware space, with over 35 models, from several OEMs including Asus, HTC, LG, Motorola, Sony Ericsson, Samsung, Palm and LG available in India. We are also working closely with Mobile operators like Bharti Airtel, BSNL, Idea Cellular Reliance and Tata Indicom; and our OEMs partners to make affordable and customised Windows Mobile phones and data plans available to consumers. Further, we are working with all major telcos in India on services and offerings that are customised for Indian consumers.
About a year ago you spoke about low-cost IT solutions for some business clusters in India. What's the status report of that?
We introduced Project Vikas in 2007. The primary focus of this initiative is to enable India's unorganised SME sector with ICT adoption, increasing their chances of competing in the global economy. It's more than ever relevant in today's environment, a fact borne out by the traction we see in the clusters.
Project Vikas is really our vision of "Software plus Services" brought to life. The manufacturers have a choice of how to consume and use software based solutions. They can choose to the on-premise model, or pay-per-use for a hosted solution, or take a mix of the two. We are collaborating with several partners to develop affordable customised IT solutions for each cluster, so the other benefit of the project is enhancing the development and availability of local software.
The challenges in the clusters are the obvious ones...those of infrastructure, power etc, and these can be addressed only by the ecosystem of government and industry working together.
Has the liquidity crunch and economic slowdown impacted Project Vikas?
Project Vikas has actually become more relevant than ever in the current economic scenario. A small manufacturer needs the increased efficiency that IT brings him. He can choose between an on-premise and hosted pay-per-use model depending on his requirement, with no compromise on the quality of service offered.
On the e-governance front effort from government funded organisations like C-DAC seem to be touching all aspects where Microsoft operates namely --- operating systems, applications, language computing etc. How formidable is the competition and how are you dealing with it?
We actually partner with these organisations, not compete with them. We work along with them to utilise the value of our products and solutions and promote the adoption of IT in the government.
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