Microsoft to launch more affordable products (BusinessWorld)

Published in the August 24, 2006 issue of BusinessWorld

Microsoft to launch more affordable products

BY JENNEE GRACE U. RUBRICO, Sub-Editor

To address price issues, the local unit of software giant Microsoft is set to launch in the country new products that will be more affordable to the market.
In a recent interview, Chay Mondejar-Saputil, Windows product manager for Microsoft Philippines, Inc., said that the new products will be “more price-sensitive” and will cater to developing markets.
“We’re trying to be more creative with our products so we created a market expansion group to find out what products can be positioned for the third world countries... These [products] will be more price sensitive,” Ms. Saputil said.
She noted that Microsoft is constrained from bringing down the prices for its Windows operating systems because it is required to keep the same pricing policy for all its markets. In its Web site, Micro- soft said its suggested retail price for Windows XP Professional is at $299 for the full version and $199 for an upgrade from an earlier version of the operating system.
But Ms. Saputil also said that some of the new products that will be launched in the country will “still be under Windows” product line.
She declined to elaborate on the new products, saying that until these are launched — before the end of the year — she is not in a  position to discuss the features.
It was earlier reported that Microsoft was looking at local language initiatives, which are internally called “Bintana.” The initiatives, which were in development in Redmond, Washington, are “aimed to create a Filipino interface
for [the] Windows operating system,” Microsoft earlier said.
Ms. Saputil declined to say how much the new products would cost.
The affordable products are aimed to address piracy issues in third world countries, officials said.
Microsoft Philippines is one of the staunchest advocates for anti-piracy policies in the country. The firm estimates that the piracy rate in the country is at 90%.
Ms. Saputil said the problem is easing, but said that the country still has a long way to go to significantly reduce piracy. “It’s better now, but not a lot of people are aware that what they are buying is pirated,” she said.
Another measure that Microsoft is currently employing to counter piracy is integrating value-added services for customers who purchase genuine software.
“Among these value-added [features] are photo storing and forms for small and medium enterprises,”
Ms. Saputil said.
Microsoft is set to launch early next year the Windows Vista, the first major overhaul of Windows
since the company rolled out Windows XP five years ago.
Late last year, Microsoft announced that it will be releasing cheaper, and easier to use versions of Windows XP for developing markets. Microsoft identified Thailand, Malaysia, and Indonesia as among the markets where Windows XP Starter edition will be released. The edition will not contain as many features as the standard version, the company said.