Microsoft is getting ready to release a cheap, easy-to-use version of Windows XP for developing markets.
Windows XP Starter Edition--an
inexpensive version of Microsoft's flagship operating system that does
not contain as many features as the standard version--will begin
shipping on PCs in Thailand, Malaysia and Indonesia in October, said Maggie Wilderotter, senior vice president for the worldwide public sector at Microsoft.
The Redmond, Wash.-based software vendor is also working out the
details of getting a starter version of Windows XP into two other
countries, Wilderotter said. She declined to identify the countries but
in a previous interview discussed Microsoft's initiatives in Brazil and
Russia as well as in Jordan, which in five years has seen its
information technology industry expand from US$20 million to US$400 million
in annual revenue.
Starter Edition is part of an effort Microsoft kicked off about 18 months ago to collaborate more closely with foreign governments on expanding computer literacy and use. The company has created
programs under which it provides regional government officials with
advice on developing indigenous capabilities in high technology.
As part of the program, certain schools in 67 developing
nations can qualify for free upgrades to the regular Windows software
and for copies of Microsoft Office that cost US$2.50.
About 600 employees at Microsoft now work on this effort, Wilderotter said.
"We have really tried to look at our engagement through a more holistic approach," Wilderotter said.
Microsoft, of course, benefits from an increase in the pool of
potential customers. About 670 million people--about one-ninth of the
world's population--use PCs today, and that number will likely increase
to 1 billion by 2009, analysts have predicted.
The Starter Edition of Windows XP is tailored to each country and
differs in a number of ways from the standard product. Microsoft has,
for instance, loaded screen savers that reflect local landscapes, flags
and traditional designs in Thailand, Malaysia and Indonesia. It also
comes with a helper CD called MySupport. Users can only run three
programs on the operating system at once, however. In addition, home
networking has been deleted.
The operating system comes in Thai and in Malay, which is spoken in
Indonesia and Malaysia. (The software accommodates differences
between the Malay language used in these two countries.)
Microsoft has already separately released a version of its Microsoft
Works applications package in all the relevant languages. However, it
has not produced a starter version of its Office productivity package.
The Thai government, in conjunction with Microsoft, is already running
a program to get Starter Edition PCs to the local population.
Wilderotter said final pricing for Starter Edition has not been
determined but noted that it will be the company's "most affordable
operating system in the market." Reports have pegged the price of the
Thai version at about US$36.
Low prices could help combat piracy, Wilderotter added. Unlike people who buy pirated software, Starter
Edition customers can get patches and updates. Similarly, a cheap
version of Windows could lessen the attractiveness of the Linux
operating system, which is currently offered as an option in the Thai and Malaysia government's budget PC movement.
"We are competing with Linux and will continue to do so," she said.
Thailand, Malaysia and Indonesia were chosen for the Starter
Edition release largely because of the programs initiated by the local
governments to promote high technology. In addition, the populations of
Thailand and Malaysia are large enough for the program to have an
impact but also small enough in global terms to keep the number of end
Chairman Bill Gates has said that Microsoft may not produce a starter version of Windows XP for China,
which has a lower per capita gross national product than the three
nations in the upcoming release but a much larger, geographically