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MICROSOFT’S STRATEGY AND GOAL IN THE CHINA MARKET

As one of the most dynamic and booming economies in the world, China has seen its demand for the adoption of information technology increase rapidly and it is one of most important and strategic markets for Microsoft. Microsoft’s strategy and goal in China is to be fully integrated with the local market through its collaboration with industries and to create outstanding software products and solutions that meet the needs of its customers and the market in China.

. thus making its solid contributions to the development of China’s knowledge economy and the IT industry for a win-win solution.The company aims to help individuals and businesses realize their potential.

hardware.MICROSOFT’S OPERATION IN CHINA “OuR StRatEgy In ChIna IS all aBOut BEIng a ValuE PROVIDER. All research and development facilities located in Beijing. Chongqing. (as an invested company) • Wicresoft Co. Offices Beijing. In no other market place except the U. Ltd. enterprises Microsoft has more than 3. Shanghai and Shenzhen including Microsoft Research Asia. service and sales channels • Censoft Co.” Tim Chen. fall under the Group • Microsoft Global Technology Support Center Greater China Region Business scope Windows Client. Mobile and Embedded Devices. Fuzhou. does Microsoft have such a comprehensive line of operations. Nanjing. Guangzhou. a tRuStwORthy PaRtnER anD a gOOD CORPORatE CItIzEn. Microsoft China Technology Center. Information Worker. Microsoft Business Solutions. Chengdu. MSN. Ltd. Corporate Vice President and CEO of Greater China Region. Microsoft Research Asia Advanced Technology Center. Server and Tools.500 employees. Hangzhou. Microsoft Since the 1992 establishment of its first representative office in Beijing to its incorporation in 1995 and to the present. Shenyang. and Home & Entertainment products Individual users. government organizations.000 partners in China in terms of software. Shanghai. Wuhan. and Xi’an • Microsoft China Research and Development Group. • Shanghai MSN Network Communications Technology Company R&D and Service Facilities Customers Partners Joint Ventures and Invested Enterprises 3 . MSN Technologies (China). Qingdao. Shenzhen. Microsoft China has grown to over 1.S.

• In November 2003. training. talent training. • In June 2002. talents. and customers in order to support China’s informatization efforts in the areas of capital. technology.MICROSOFT’S COOPERATION IN CHINA Microsoft has strengthened its close relationship with the Chinese government. partners. The amount covers investment. • Microsoft signed the MOU with the Ministry of Information Industry in March 2004 to jointly build labs related to the State Public Service Platform for Software and Integrated Circuits. 4 . Microsoft signed a Cooperation Framework with the Ministry of Education on its informatization efforts regarding China’s primary education in order to support primary and normal education. which includes a package of cooperation projects. research cooperation and curriculum support. technical cooperation. Microsoft signed the MOU of Great Wall Plan with the Ministry of Education to develop its cooperation with Chinese universities in higher education in categories of academic exchange. The main cooperation focuses on the following agreement framework: • Microsoft signed the $750M MOU with the National Development Reform Commission in June 2002 to work together to build a dynamic Chinese software industry. and markets and to aid in the development of China’s software ecosystem and IT industry for its win-win cooperation strategy. software projects and hardware procurement.

000 attendees. etc. Microsoft has cooperated with the Ministry of Information Industry to jointly organize the “Share the New Century” and “Strategic Training Courses on IT Application and Management to Boost the Northeastern Region. Ministry of Information Industry Strategic Investment During 2002-2005. research cooperation and curriculum support. about 40 universities and research organizations have participated in the program.FOSTERING INNOVATION AND LOCAL SOFTWARE “wE SuPPORt MICROSOFt FOR FuRthER DEVElOPMEnt In ChIna thROugh COOPERatIOn anD COllaBORatIOn wIth lOCal It EntERPRISES FOR Mutual DEVElOPMEnt anD PROSPERIty. Chinasoft International. Ltd.“ Zhang Qi. a new round of training focusing on case studies and best practices is taking place in the software parks.” which has trained over 300 executives and technical staff from Chinese software companies. Since March 2004. talent training Microsoft and the Ministry of Education jointly launched the Great Wall Plan in June 2002 to develop its systematic cooperation with Chinese universities in higher education in categories of academic exchange. In the past three years. Currently.. talent training. Microsoft made over $62M strategic investment in local companies like Langchao International. Microsoft has trained over 10. Director General of Electronics and Information Product Administration. Microsoft and China National Development and Reform Commission 5 . Dalian Hi-Think Computer Technology Co. and 100 CIOs from state-owned enterprises in Northeast China. Over 600 academic exchange activities have been held that included a total of 300.000 software architects and senior program managers for 11 national software parks since 2003 through onsite training and e-learning.

Together with China’s Ministry of Information Industry. the China Technology Center helps them enhance their innovative capabilities and expand their market in China and overseas. Jiangxi. Liaoning. . Tianjin. Guangzhou etc. Microsoft has established an Xbox production line in China with large quantities of annual purchase of hardware. In cooperation with local software industry bases/software parks. These centers serve as a platform to provide service on software development and talent training to local ISVs and partners. Microsoft has established the MII-MS Windows/.Net Platform Lab and the Embedded Software Lab in March 2004 as part of the State Public Service Platform for Software and Integrated Circuits.FOSTERING INNOVATION AND LOCAL SOFTWARE jointly launched the Development Potential Initiative in November 2005. the China Technology Center has established long-term cooperation with more than 200 partners in China and has completed more than 300 joint projects. so as to provide them technical support for software development. Since February 2004.and high-level talents and efficient technical support in order to enhance the core competitiveness of software companies. By way of sharing its technology and experience with its partners. Microsoft has established 11 Microsoft Technology Centers in Chengdu. Hefei. Software Outsourcing and Purchase Microsoft has cooperated with Chinese companies in software outsourcing to help them go abroad. These labs serve a large number of small and medium-sized Chinese software companies and computer users in China. amounting to 8 billion 6 yuan since 2002. and to promote knowledge and independent innovation. technical Cooperation Since its establishment in September 2003. The Initiative will be expanded in the next five years. Microsoft provides training for mid. in cooperation with the local governments and partners.

and sustained development of China. which is aimed to bridge the digital divide in cooperation with various partners and contribute to the comprehensive. Shanghai. Shanxi.Microsoft (China) “Partners in Learning” project was officially launched in November 2003.000 IT professional teachers from primary schools and high schools in rural and remote regions have attended the training and tens of thousands of students from remote mountainous areas have benefited from the training. Fujian. IT curriculum design. 7 . balanced.MICROSOFt. unlimited Potential Initiative Microsoft has established eight Community Technology Learning Centers in Beijing. * the data in the introduction is as of March 2006. To date. and Chongqing.COM/ChIna Ministry of Education Microsoft (China) “Partners-in-learning Initiative The Ministry of Education -. Shaan’xi. PlEaSE gO tO www.BRIDGING DIGITAL DIVIDE FOR MORE InFORMatIOn. thousands of immigrant workers and community residents have been trained and tens of thousands of farmers’ families have benefited from the project. More than 15. and the construction of 100 IT Classrooms. It covers IT teachers training. education solutions development. Guangdong.