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Monday, March 22, 2010

Online is the real estate of tomorrow: Microsoft

22 Mar 2010, 0858 hrs IST, Amit Sharma, ET Bureau

Post the launch of Windows7 operating system and the Bing search engine, the world’s biggest IT company- Microsoft is abuzz with activity. Fighting a battle with competitors at different levels, Hemant Sachdev, joint managing director, consumer & online, Microsoft India, talks to ET about the challenges he faces as the company forays into a diverse arena of consumer products and services. 

While
India is a fast growing internet market, it is also diverse in consumer profile. How is Microsoft working around this aspect of the Indian market? 

India is one of the youngest countries in the world with over 60% of the population below 30 years. A large number of consumers are young but it is interesting to note that several unique audience segments are entering the market. Another change is that Indian consumers are multi tasking more than ever. 
Evolution in the consumer landscape has been very positive for Microsoft, and our consumer strategy is completely aligned. In the last year alone, we have introduced a plethora of products in consumer space – be it home entertainment and computing, online solutions or security offerings . Case in point is Windows 7, which has been an unprecedented success and is simplified while being safer, faster and very secure. Extensive consumer feedback and our applied learning from Windows Vista have translated into Windows 7. It is one the fastest growing operating systems in history, and we have sold over 60 million Windows 7 licenses worldwide. 

Consumers are getting increasingly wired and connected in groups online. What kind of a product and marketing strategy has your company evolved to sell them relevant offerings? 

We are arguably the world’s most successful consumer technology company already. A billion people “speak” Windows, in virtually every country and culture. And we’ve extended Windows to the Web, where more than 460 million people use our Windows Live services, such as search, e-mail or instant messaging. We’ve brought Windows to more than 20 million mobile phones in the last year alone. Xbox Live has introduced community and social interaction, and now has more than 12 million members worldwide, playing, sharing and connecting together. 

Consumers today are getting and sharing information and experiences across multiple platforms for a multiplying number of purposes that are as unlimited as their imaginations . And across every platform, a lot of the most exciting opportunities lie in social media and social technologieshelping people connect with others. 
This consumer focus is more than a new organization. It’s evident of a mindset within the company – a new way of thinking about how the more than six billion consumers around the world live and work and how they choose to use technology in their daily lives. We helped democratise the PC from being a tool for business into being an indispensible resource for more than a billion people around the world – and it was only the beginning. This is the next step on the journey to make it easier for people to connect, share and learn through technology. 

Online advertising is still picking up in India and is miles away from traditional media. How do you explain the frenetic activity among giant online companies to attract advertisers? 

In India, Online is a small industry today and while its potential has not been realised yet. We believe that with increasing PC penetration, online is geared for unprecedented growth. This is the real estate of tomorrow, and it is where consumers are living their lives. From a Microsoft perspective, we are super focused on the online space, and have made a number of investments. Search is ripe for innovation and with Bing, we have focused on listening to what consumers feel is lacking in the current search experience and have released a product that we feel better addresses the complex tasks and queries they are looking to search to complete. We have also created an integrated and compelling user experience across a wide portfolio of products and services through our Software + Services. We are one of very few companies in the world that can execute across such a broad array of services and experiences. 

To us, online advertising represents a very large market opportunity, and one that we’re positioned well to capitalize on. All our plans and innovations are geared towards the incredible growth in the online industry worldwide. With Microsoft Advertising, we provide a platform that allows the online industry globally and in India to grow and develop an ecosystem for advertisers and publishers that offer ease of use, relevant audiences and genres. And if you finally look at Windows Live we already provide some of the most popular services for consumers worldwide, such as Hotmail, Skydrive and Windows Live Messenger. And it’s a platform we’re constantly innovating on. Overall, in the online space, the reality of what it takes to succeed is strong infrastructure, global breadth and depth, and better core experiences for what people are doing most on the web. 

Piracy is a major concern of every marketer in the IT space. As the biggest company from the sector and perhaps bearing the most damage, what are you doing to tackle the menace? 

We are raising awareness among customers and resellers about the risks of counterfeit & pirated software to enable them to better protect themselves and ensure that their software licensing is in order. Our strategy is focused on education and awareness as key levers to address piracy in India and encompass a range of consumer and channel initiatives . We also have a whole host of other programs like Get Genuine Solution (GGS), Software Asset Management (SAM), Windows Activation Technologies and Office Genuine Advantage (OGA) to ensure consumers are realizing the true benefits of original software. Tackling piracy is all a part of a larger process and will take time.