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SUNDAY, NOVEMBER 22, 2009

Bangalore: Software maker Microsoft Corp. on Thursday launched Windows 7 operating system in India, pricing it at least 20% cheaper than in the US to tackle piracy.

Windows 7 can, however, hit stores only after the firm resolves a tax dispute with the customs department over the interpretation of tax rules introduced in July on imported packaged software.

System upgrade: Microsoft India chairman Ravi Venkatesan speaks during the launch of Windows 7 in New Delhi on Thursday. Dar Yasin / AP

System upgrade: Microsoft India chairman Ravi Venkatesan speaks during the launch of Windows 7 in New Delhi on Thursday. Dar Yasin / AP

“There is an ongoing dialogue with the government. We hope it will be resolved soon,” company spokeswoman Dipti Mehra said.

Microsoft is working with software lobby group National Association of Software and Services Companies to end the dispute, she said.

Windows 7 is designed to be lighter and with more features than the Windows Vista operating system, the company said in a statement.

Microsoft expects the new system, launched globally on Thursday, to revive sales after Vista flopped due to bugs and technical problems.

A basic home version of Windows 7, available only in emerging countries such as India, is priced at Rs5,899, excluding taxes, while the high-end version, named Ultimate, will cost Rs11,799. In the US, the high-end version costs $320 (Rs15,000).

“Some emerging countries have a differential price, basically to tackle piracy,” Mehra said.

Microsoft did not reveal the price of Windows 7 bundled with personal computer makers.

India has alarming rates of software piracy pegged at 68%, Rakesh Bakshi, a counsel for Microsoft India, had said in an email interaction in July on intellectual property and piracy.

Nearly 90% of Windows software is sold by bundling it with a laptop or a computer in India. The company said 16 computer makers such as Hewlett-Packard Co. and HCL Infosystems Ltd will introduce Windows 7 in about 100 laptop and personal computer models within a month.

At least 1,500 Indian firms, including Infosys Technologies Ltd and Wipro Ltd, are changing over to Windows 7, according to Microsoft.

The new software is being priced one-third lower than Vista in India, the company said in a statement.

“We have launched Windows 7 in six editions, targeted at specific user groups,” Microsoft India chairman Ravi Venkatesan told reporters in New Delhi.

PTI contributed to this story.

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Jagannath Said:


True, but Microsoft also made Windows 7 available in the US for preorder at a special price of 50USD (2500 rupees). They also have a 3 computer family pack for 150 rupees (again works out to 2500 per computer) It would be great if Microsoft can offer these options for us in India.

Posted On 10/23/2009 10:43:26 AM
Re: Saurabh Said:


Those are the update prices and not the prices for retail version. Microsoft is yet to understand the correct pricing for India. Nobody is going to buy your operating system for 12K +tax or 6K here. Usually people use the licensed Windows only when they get it free with a Desktop or Laptop. Its not that people don't want to spend on software, its just that Microsoft has no sense of what price would be acceptable to Indian consumers.If I earn 12K a month I wont spend all that Windows 7 when I obviously have other and often better options(Linux-I am grown up and don't play games much)

Posted On 10/25/2009 10:17:14 PM
rajendra Said:


The pricing in India does not seem to be a strategy to tackle piracy. Typical Indian consumer considers 6-11K very high price to pay for operating system that he/she can get almost 'free' from 'other channels'. Microsoft is making other mistakes too. In India, the product that says 'ultimate' will be more desirable and the one that says 'home premium' will be considered lacking features (that's the mindset often), so people will desire the 'ultimate', which they will find not affordable and therefore may get one pirated. A better strategy would have been to price at 2500-6000 or 3500-8000 (yes I know that's way below but will get more money to MS). Another strategy that MS will probably use is to offer attractive pricing to employees of its clients (like Infy) on a relationship or employer-assisted purchase basis. This will help spread authentic windows. Microsoft's authenticity campaign has been thoughtful, has been noticed, but people can't change their preferences based on such campaign - they need sound economic rationale. Also, the product editions should be named : Home Advantage, Professional, and Professional Plus - that way people will find the low-priced Windows attractive. Another good option is to enable people buy as many windows licenses as they want on employee discounts for employees of Microsoft's clients. That way, cheaper windows will flood the market and MS will make money in India, lots of it. People buy Anti-virus, they will buy windows too if you give them compelling reasons AND good price, and a 'feel good factor' that does not come when you buy a 'home' system when 'ultimate' is out there.

Posted On 10/26/2009 12:29:20 PM
Re: niranjan Said:


@Rajendra, you've hit the nail in the head. Selling at below cost price is much better than letting people pirate and use it for free. If done, the earnings from the Windows 7 sales in India will be a drop in the ocean, but Microsoft and the world would feel much better to learn that the Windows piracy has dropped and people are actually buying licensed version in India. As an IT geek, I am inclined to by Windows 7 Ultimate but its exorbitant price tag pushes me back. Microsoft has worked very hard pushing Windows Vista as OEM but not working any bit on retail sale. Hope they have some good plans for Windows 7 retail marketing as it is now carrying its good will and got lots of great reviews.

Posted On 10/29/2009 2:29:59 PM