Microsoft launches low-cost Windows in India
US-based Microsoft Corp will introduce a low-cost version of its Windows XP operating system in India in early 2005 in a bid to capture a market of millions of households.
The move comes as the world's largest software seller faces dual threats from piracy and the spread of the freely available Linux operating system in developing countries.
Microsoft's XP starter edition in India will be distributed in the national language Hindi as well as in English.
Microsoft officials said affordability and the lack of a local language operating system were two big barriers to boosting computer penetration.
"We're confident this low-cost, customised and localised technology solution will spur personal computer usage," said Ravi Venkateshan, chairman of Microsoft India told reporters.
India is the fifth developing nation chosen by Microsoft to receive its stripped-down Windows version. The Starter Edition Pilot Program was introduced in Thailand, Indonesia, Malaysia and Russia in August.
Just 0.8 percent of India's billion-plus population has a personal computer at home, despite explosive growth of the information technology software industry in the country over the past decade.
Microsoft did not give any price for the product but an official said it would be "substantially lower."
"I expect a 20 percent drop in the price of personal computers (with the launch of the Windows version), which I would request computer makers to pass on to the consumers," Information Technology Minister Dayanidhi Maran said.
A personal computer retails for around 35,000 rupees ($US761.53).
Venkateshanchairman said the new operating system was easy to use and includes most popular features of other Windows versions including Internet, chat, photoshop and networking applications. Microsoft plans to introduce the software in other local languages in India later.
Industry officials said they hoped the cheaper Windows version would help tackle piracy by reducing the price gap with the gray market.
They also said it should aid Microsoft in competing with rivals such as Linux which offers its operating system software free and is gaining popularity with state-run Indian agencies and institutions.
Microsoft has large presence in India with offices in seven cities. It opened its subsidiary Microsoft India in 1990 and has since been tapping its human resource pool for IT research and software services.
Software companies in India and China have been faced with the challenge of getting users to pay for their software as pirated versions are sold at a fraction of the price.