India and China accounts for only 5% of their total revenue. Why does Microsoft want to go in their and change their strategy?
From case: Microsoft planned to develop a Smartphone called Fone+ and a starter version of Windows called "Windows Starter Edition" so that people in China and India can get accustomed to buying software and not use pirated software.
Fone+ is a Smartphone which MSFT thought that it will change how people in China uses their computer. First of all, the number of people in China with cellphone is far more than the number of people in China with computers. This was the reason why MSFT changed their strategy and decided to create a phone (Fone+) which can act as a Smartphone and at the same time if users want to work on their computer, they can hookup Smartphone with wires and treat that as a computer..... Smart idea :-)
The question is, how many people would use this? To me, I don't like this strategy but again I am not sure how Chinese live. My take on this was that Cell phone users are more accustomed to what they use their phone for. Most Chinese users use their cell phone for entertainment, Messaging, Internet and other fun purpose. About how many percentage of Fone+ Smartphone user will go and use their phone as a powered computer???? My assumption is less than what MSFT though they would.
- What would people do if they want to use that as a desktop?
- How effective will it be to use productivity software via Smartphone?
- Is it fast enough to act as a Desktop for complex application?
- How many users are accustomed using computer? - The reason why MSFT thought about bringing Fone+ was because not many people had computers in China. So using Fone+ as a computer is out of question. It is true that lot of people may use Fone+ as their computer but what percentage????
- How about in India?
- Will they be successful in selling this phone in India?
- Actually, it may do better in India than China. The reason behind this is that Indian public is more geared towards having an gadget than making a good use out of it. If a phone can be used as a desktop for simple internet use than definitely they would like it.
- One of the reason is that Indian cell phone companies compete heavily against each other.
- Another reason behind this is the plan/scheme (as people in India say something like this) that the companies offer. I remember when I was in India, virtually everyone had cellphone. Companies used to (they probably still do) give out cellphone for a one-time flat fee which will only cover incoming which will be free for lifetime. So if someone wants to call a person that has incoming free then they can receive as many calls as they want for free and not get charged for a second (I wish they have a plan similar to that in US).
Since we've talked about Smartphone a lot, lets focus on Windows Starter Edition. Microsoft came up with this idea that they will introduce a cheaper edition ($25 - $30) which will include a Windows Edition with far less features than a regular version. Why?
Because, they wanted to stop piracy in India and China where they both were leader in software piracy. Microsoft along with the help of FBI and local government did manage to find few pirates but that's not enough to stop total piracy. With over a billion people each in both country, it is hard to enforce something that they are not used to.
If you are getting stuff for free, why would you change and pay for a version that is not even the same as the one you get for free??????? This is the response that people in India and China will convey to you when asked about piracy. I have asked few of my friends from both countries and that was their response.
The only suggestion that I can give to MSFT is to make their OS more secure or something so that it is hard to break. Instead of enforcing something on people that they are not used to, work with them, ask what they need and maybe customize your OS in a way that everyone is satisfied. If Microsoft is still trying to enforce something on the users then there won't be long until people would switch to open source. Maybe they might switch to Mac which is more stable and cheaper.
My experience in India tells me that people in India loves technology and the productivity tools that are available for Windows or any other OS out there. If you have a Starter Edition then there are lots of things that folks won't be able to do which will drive them away from Microsoft.
Please MSFT, let the piracy happen and come up with a better option on how to stop. Anything that has happened, it cannot be changed but you can work around the system. I do have sympathy for MSFT but there is so much you can do...
By giving users a cheap OS with less features would not help boost your revenue as people are not looking for a reduced version of Windows. Keep in mind that the PC market in India and China is mainly controlled by OEM Manufacturers which enables this piracy issue that we are seeing with Windows. If it is enforced on OEM Manufactures to install Licensed version then it may be controlled a bit but again the root cause will still not be resolved. The root cause is the security of Windows. No matter how much MSFT claims how secure is the OS and how unbreakable it is, people from around the world are able to crack it and get the illegal copy of Windows.... Why? because....it is breakable. Make Windows such that it is unbreakable but at the same time also make sure that the Open Source OS doesn't gain ground against Windows.
Any comments??????