Microsoft to explore cheap software for Asia

Microsoft to explore cheap software for Asia

Sean Yoong
Associated Press
Putrajaya, Malaysia

Bill Gates said on Tuesday that Microsoft will hold talks with
Asian governments to offer tailored, cheaper versions of its
Windows operating system geared toward bringing computer skills
to millions of poorer people.

The discussions will grow out of a project Microsoft announced
last week to offer a version of Windows, dubbed Windows XP
Starter Edition, in Malaysia and Thailand under government-
sponsored programs to provide more affordable personal computers
to beginning users.

"We will talk with other governments about whether they have a
program to get very, very low-cost computers to their citizens,"
Gates told a news conference during a visit to this Southeast
Asian country.

"When they have a program like that, we will talk to them
about which of the versions of Windows would make sense there,"
Gates said. "We've shown a lot of flexibility about tuning the
versions to meet any government program."

Gates would not specify any country Microsoft is targeting in
such talks. He was asked about the potential for such projects in
China and India - the population jackpots in Asia where computer
use is exploding.

Gates, who sits on a panel advising the Malaysian government
on technology policies, held talks with Prime Minister Abdullah
Ahmad Badawi for about 45 minutes on improving access for
technology to Malaysians.

The company and Malaysian officials signed a memorandum of
understanding for Microsoft to invest 10 million ringgit (US$2.62
million) to train teachers and improve information technology in
10,000 schools over five years.

The software giant faces increasing competition in developing
countries from cheaper rivals - such as those based on "open
source" Linux technology - plus the continual challenge from
product piracy.

Providing cheaper legitimate versions of Windows could allow
Microsoft to gain some share in the lower end of the market,
which is fertile ground for pirates.

A legitimate copy of Windows XP installed on personal computer
in Malaysia currently costs from 320 ringgit ($84) to 515 ringgit
($135), retailers say. A pirated copy can cost as little as 5
ringgit ($1.40).

The scaled-down versions of Windows that Microsoft is offering
have many typical Windows features. Under a program already under
way to bring computers to rural households, a personal computer
installed with a Malay-language version of the XP Home edition
sells for 1,147 ringgit ($300).

Gates said that making Windows "very, very inexpensive" would
benefit people who want to train on Microsoft software and
eventually land higher-paying employment as software-related jobs
are created in Asia.

Gates, who last visited Malaysia in 2000, sits on a
multinational advisory panel that helps the government formulate
information technology policies, especially regarding the
Multimedia Super Corridor, a business zone offering tax breaks
and grants to attract companies and researchers.

Malaysia's high-tech industry centers on labor-intensive
processes - such as assembling and testing components - that rank
low in terms of know-how. Analysts have said the education system
needs to be revamped to attract more investment and spur research
and development.

Abdullah said that he and Gates discussed Malaysia's aim of
providing more people with access to computers and cultivating
homegrown specialists to create new software and technology for
international markets.

"Those without access to IT facilities will surely be left
behind in terms of modern development," Abdullah said.

Gates has already visited Australia and heads next to China.