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| UPDATED: 2006-05-22 |
 Microsoft Makes Play For Emerging Markets 
By: David Utter 2006-05-22 The company announced a number of partnerships for its FlexGo technology aimed at establishing Microsoft in countries with emerging economies.  A need for growth to satisfy demanding shareholders faces technology companies. Google followed Microsoft (MSFT) and Yahoo into China to tap the world's fastest growing Internet market, for example. Emerging markets offer first movers in their economies the chance to profit as those countries grow from a minimal userbase to fully embrace technology.
Microsoft's unveiling of the pay-as-you-go business model could accomplish a couple of tasks for the company. By becoming an integral part of a small-but-growing number of computer users' lives, Microsoft seeds future demand for its mainstream products as an emerging economy increases in profitability. Second, lowering the barrier to entry to use its technology by minimizing costs may have an impact on the software piracy that has been the bane of Microsoft and countless other technology companies. The prepaid model has precedent, as Microsoft noted the global use of over a billion prepaid phones in the world today. FlexGo offers a low-cost PC equipped with Windows in markets where the issues of access to consumer credit and higher entry costs keep technology out of the hands of users. Microsoft plans to establish FlexGo trials in Brazil, China, Hungary, India, Mexico, Russia, Slovenia and Vietnam. The company announced a number of technology partners, including processor rivals AMD and Intel, the China-based PC maker Lenovo, and others. The company has been working with a number of telecom companies in those emerging markets on a subscription model for PCs equipped with Microsoft software and broadband access. Microsoft plans to roll out subscription-based PCs in Brazil, Hungary, India, Slovenia, and Vietnam. --- Tag: Microsoft Add to Del.icio.us | DiggThis | Yahoo! My Web | Furl Bookmark IFN - 
View All Articles by David Utter About the Author: David Utter is a staff writer for InternetFinancialNews and WebProNews covering technology and business. |
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