Microsoft Indonesia not preinstalling Office 365 in PCs

[UPDATE] Software vendor has dismissed reports it will preinstall its cloud-based office productivity suite in Indonesia, where software piracy is rampant with only 10 percent of Microsoft users using legitimate versions.

Microsoft Indonesia says it is not in discussions with PC makers to preinstall its cloud-based productivity suite Office 365 as part of efforts to curb piracy in the country, dismissing a report which suggests so.

Microsoft Office
Microsoft has 98 percent share of Indonesia's software market but only 10 percent of users are using legit software.

In a report Wednesday by The Jakarta Post, Andreas Diantoro, president director of Microsoft Indonesia, was quoted to say the software vendor was in talks with at least seven leading PC vendors including Acer, Hewlett Packard and Toshiba to bundle Office 365 in their PCs.

[UPDATE 10:09PM] However, Microsoft's representative told ZDNet Asia it had no plans to do so, noting that many PC original equipment manufacture (OEM) for Windows do preinstall a 30-day trial version of Office 365 Home Premium. Other OEMs do choose to pre-install a full copy of Office on their PCs but it is a "perpetual" copy and not Office 365.

[UPDATE Feb. 14 11:11AM] The representative added that it is the OEM who decides if it preinstalls Office in their devices and not Microsoft's decision.

Through the subscription-based software suite , Andreas said in The Jakarta Post report Microsoft is hoping to curb piracy of its products. He added that the vendor had 98 percent share of Indonesia's software market, but only 10 percent of users were using legally-purchased software.

"This means that the remaining 87 percent of the market is using pirated software. It would be good if we could bring this number down to 80 percent," he added.

He believes the lower price and additional bonus offers would attract users to Office 365. "Around 50 percent of people who run the trial version of the software end up buying the full version,' he said.

[UPDATE Feb. 14 11:11AM] The Microsoft representative, however, told ZDNet that Microsoft does not disclose trial conversion rate for Office 365.

[UPDATE 10:13PM] The Microsoft representative added that the subscription-based model was not a move to stop piracy but to allow users access to data wherever they are.

Andreas added that besides pre-loading the product in PCs, Microsoft would sell the software online via its global Web site and retail outlets. Currently available in 168 stores in Java, Palembang, Medan and Makassar, he said the product will be available in 500 stores across Indonesia within the next three months.

On Tuesday, the consumer version for home and university users was launched in the country, according to the Jakarta Post report.