Microsoft pushes new business model

Microsoft to increase its reach in India nearly three fold and build more partnerships to expand customer base.

BANGALORE: Microsoft is looking to increase its reach in India nearly three fold and build more partnerships as it tries to expand its customer base by providing solutions through a blend of web-based and PC-installed software, a top company official said. The new model will combine on demand software delivered through the internet and the traditional software which sits on personal computers.

Microsoft will facilitate the adoption of this model by increasing its network to 33 cities from 12 and partnering with independent software vendors for applications and also with system integrators. “We would like to combine the best of the two worlds — the PC and internet — to deliver more end-to-end products to our customers,” Jean-Philippe Courtois, president of Microsoft International said.

With on-demand software — called software as a service (SaaS) — the customer merely rents a solution which is delivered remotely. Browser-based applications delivered on demand could mean lesser investment on hardware and software licences.

IT research firm IDC has forecasted that worldwide spending on SaaS will reach $10.7 billion by 2009. Microsoft calls its blended model software + service (S+S), where hosted services will work in tandem with software that sits on the PC.
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