Microsoft In Emerging Markets

1. Microsoft In Emerging Markets Author : Liam Cronin Group Manager : Home And Entertainment Division

2. Microsoft Mission: Then And Now • 1975: A PC on every desk and in every home. • Today: To enable people and businesses throughout the world to realize their full potential. During this time, more than one billion PCs have been sold!

3. Emerging Markets : Vision Bring information solutions that fundamentally improve the lives of the 90% of the world’s population that today cannot access computing or the Internet. Emerging Markets : Mission Innovations in products and business models that will allow us to serve one billion new customers within the next 10 years. Product changes in hardware, software, and services are necessary to provide computing that “fits” within emerging economies. Business model changes include bringing new solutions to customers that address computing affordability. Emerging Markets : Our People Product development team with deep expertise in both client and web services necessary for this new generation of products.

4. New PC Opportunity • By 2010 PC installed base forecasted to grow by 725 million PCs 1.3 billion. 20% in Developed Markets, 159 million new PCs 80% in Emerging Markets, 566 million new PCs Source: Forrester, Sizing the Emerging Nation PC Market, December 10, 2004

5. 71% or 132 M Licensed PCs 11% or 21.3 M Unlicensed PCs in Developed Markets 17% or 32.5 M Unlicensed PCs in Emerging Markets Unlicensed PC Opportunity • In FY ’06 the unlicensed PC opportunity exceeds 50 M PCs, 60% or 32.5 M unlicensed PCs are in emerging markets. Source: OEM PC Forecasting Team, Windows Client Finance

6. Middle Income • $2,000-$6,000 annual family income • Typically own TV, cell phone, refrigerator, and two-wheeler • Elevation through education is primary focus • Multi-generational family structure Consumer Profile Unique Needs • Segment Uniqueness • Frequent power outages • Dust/heat conditions • Dense living spaces • Low literacy rates • Weak public infrastructure • PC in same category with “luxury” purchases • Low Income • Annual family income less than $2,000 • Typically own radio, bicycle and occasionally TV and cell phone • Poverty alleviation is primary focus • Mostly farmers in rural areas and urban poor

7. Lang. Segmentation of Markets Underdeveloped Strategic Growth Strategic High Strategic Importance 1 Ecosystem disruption potential 2 Competitive pressure 3 Country stability 4 Government commitment to IT 5 Population Each segment would have a meaningfully different operating and investment model Strategic Importance Underdeveloped Growth Low Economic vibrancy / Profit Potential Low High Economic Vibrancy / Profit Potential (Current figures + 10 year projection) 1 PCs 2 Internet users 3 Cellular subscribers 4 GDP 5 PCs per 100 inhabitants 6 Internet users per 10,000 inhabitants 7 Cellular subscribers per 100 inhabitants 8 GDP per capita Size Density

8. Localization Pyramid As market economies change/mature, the Biz case for a language can move up or down New

9. The Local Language Program • Part of ongoing Microsoft commitment to reach out to governments and regions worldwide • Mission -- Bridge the digital divide and provide IT opportunity • Addresses several critical goals of today’s national and regional governments: • Develop a robust local IT economy • Build universal IT solutions for Multilanguage cultures • Enable use of regional languages in technology to help preserve language and culture • Complements other Microsoft initiatives such as Partners in Learning (PIL) and Unlimited Potential (UP)

10. Add-ons, spellers, fonts, templates Solutions Localization of the User Interface ~ 250k words for Windows ~ 250k words for Office ~ 50k words for Works Localization Shared Terms Windows Terms Office Terms ~ 2700 Terms GLOSSARIES Project Details Glossary Phase = 2 month. Localization Phase = 4-6 months. Solutions Phase = Partnership between MS subsidiary and partner’s.

11. The Local Language Program Pillars Language/Culture Technology Communities Community Glossary Language Interface Pack Solutions

12. Community Glossary • What is a Community Glossary? • Glossary of commonly used IT terms. • Web site provided by Microsoft (http://members.microsoft.com/wincg) • Work area and Web tools for volunteer translators and sponsor to build and lock down a technical glossary for their language. • Community Glossary provides opportunity to collaborate with local governments, language authorities, universities, other groups in selected language communities worldwide.

13. Moderator role – Lang. Quality • Community glossary approved by moderator. • Style guide prepared by moderator. • Policheck table (to avoid geo-political issues) prepared by moderator or Geographical group within Microsoft. • Language or software review by moderator. • Vendor / partner completes consistency check.

14. Program Components -Language Interface Packs • IT glossary created by the Community Glossary project is used to build new Language Interface Packs (LIP). • What is a LIP? • Provides partially localized desktop solution for markets that do not have localized versions of Microsoft Windows, Office, Works • Created by a locally suggested partner or ISV using the Language Interface Pack Kit (by license only) • Installs on: • Windows XP Home and Windows XP Professional. • Office Standard Edition 2003: Word 2003, Excel 2003, PowerPoint 2003, Outlook 2003. • Requires specific base version of Office, Windows, Works • Example: Malay LIP requires English base product. • Example: Ukrainian LIP requires Russian base product. • Does not include add-ins, online services, or solutions.

15. Why should I consider LIP? Challenges & Opportunities • This initiative is a collaborative effort for the education, government and public sectors. • Partner engagement in this project is strategic. LIP is a starting block and partners are encouraged to build on this initiative. • Help build the local IT economy by providing standardization of terms and a localized platform. • Customer expectations to be served in their native language.

16. Language Interface Pack Distribution and Release • The MS product group releases each LIP to the Web. This is an important quality safeguard. See more details at the following web location : http://www.microsoft.com/downloads/wwlist.aspx?DisplayLang=en • LIP releases to the Microsoft Download Center, OfficeOnline, Windows Update. • The Language Interface Pack also may be distributed on Microsoft’s behalf by participating third parties such as governments and Original Equipment Manufacturers (OEM’s).

17. Ar chuala tú an scéal faoi? Microsoft Office 2003 as Gaeilge (http://www.microsoft.com/downloads/details.aspx?FamilyId=CCF199BC-C987-48F5-9707-DC6C7D0E35D0&displaylang=ga) • Word • Excel • Powerpoint • Outlook

23. Additional Resources • For more information on the Local Language Program (including links to the LIP downloads) , please visit: http://www.microsoft.com/resources/government/locallanguage.aspx • To request a Language Interface Pack please contact your local Microsoft office