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Last updated at: (Beijing Time) Monday, March 01, 2004

Microsoft to cut tools prices for Asia

Microsoft is planning to cut prices and offer different editions of its software development tools in China and other developing countries in Asia, in a move that reflects the impact of piracy and Linux, the free rival operating system, on its business in the region.


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Microsoft is planning to cut prices and offer different editions of its software development tools in China and other developing countries in Asia, in a move that reflects the impact of piracy and Linux, the free rival operating system, on its business in the region.

The plan, the first of its kind for Microsoft globally, is part of the software giant's efforts to win over developers in Asia. Independent software developers have been crucial in spreading the use of its software internationally.

It also reflects Microsoft's difficulties in China, where more than 90 per cent of software sold is believed to be pirated.

In addition, China has been encouraging the use of Linux, the open-source operating system, and the development of an independent Chinese operating system, partly because of concerns about the high cost of Microsoft's products.

"It's useless for us to talk about our technology when nobody can get ahold of it," said Colin Png, Microsoft's director for Asia and greater China. "We want to make some of these software editions [in development tools] more accessible."

Software development tools are used by developers to create different applications. Microsoft's main development tool is called Visualstudio.NET, which allows developers to create applications in more than two dozen languages.

Microsoft will start offering editions of Visualstudio.NET at lower prices to developers in China, Indonesia, Vietnam, Indonesia and Thailand in the next two to three months.

An entry-level Visualstudio.NET package currently retails for $499. This price has proved too steep for many of Microsoft's current and potential customers in the region, Mr Png said in an interview.

Some will get the software at deep discounts. "We are planning to almost give away the software to [software development] students," said Mr Png.

Microsoft will also make free trial kits, which allow developers to test-drive the tools for a specified period of time, more available.

The Asian software development tool market is expected to expand rapidly in the next few years.

IDC, the research group, estimates that the market for application design and construction tools will grow from $340m last year to $539m in 2007.

The market for software development tools used during a product's life-cycle will increase from $103m to $164m over the same period, according to IDC.

Mr Png estimates that Microsoft currently controls about a third of the market for software development tools in Asia. He aims to grow the business by about 10 per cent this year, slightly below last year's 11.2 per cent growth.

Source:Agencies


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