Microsoft To Invest Heavily In China
abb_road writes "As part of Chinese President Hu Jintao's recent visit to Redmond, Microsoft is announcing plans to invest $900 million dollars directly in software and hardware companies in China. The announced goal of this investment is to reduce software piracy and establish Windows-dominance in the region; what's not clear is if they expect the reduction to come from local business pressure or more direct government intervention." From the article: "To now, Microsoft's investment efforts have made little headway in reducing piracy. The company should be booking about $1 billion on annual sales of some 20 million PCs in China, says Paul DeGroot, an analyst at consultancy Directions on Microsoft. Instead, sales there are about $100 million, he says."
Seeing as how China is the piracy capital of the world. I doubt Microsoft can do little to stop it. Having been in China, I can say that the piracy market is impressive. Every market you go to you'll find dvds, software, and everything else on the cheap.
Exactly the case here (Bulgaria) in 1998-2000, the piracy is ripe, and actually Microsoft is indirectly encouraging piracy (do you remember they didn't even require you to enter a serial in Windows 95?) in plenty of political and technological ways.
Then, when the market is hopelessly stuck with Windows (and to a certain degree Office) they come and harvest the crops, by launching a massive anti-piracy scheme, checks in firms for genuine software and so on niceties.
Microsoft was getting ready to go harvest in China for quite some time now, it was a known thing to come. The huge piracy in China is actually a blessing for Microsoft, and they have a well thought plan how to take advantage of it.
As a matter of fact, if every human on the planet was so honest that he'd never pirate Windows, we'd be much less dependent on it in first place, and Microsoft wouldn't sell so much. That's obvious.