Cloud Business Featured Article
Microsoft Expands Investments in China Cloud BusinessSeptember 17, 2012
By Erin Harrison, Executive Editor, Cloud Computing
To capitalize on the growing market in China, Microsoft (News - Alert) plans to expand its investments there by adding new hires, increase research for local requirements, and expand into additional cities and provinces to bring cloud computing services to its enterprise customers.
Under the expansion plan, Microsoft said it will recruit more than 1,000 staff in China, half of which will be college graduates. Microsoft’s annual R&D investment will exceed $500 million.
Over two decades of growth, Microsoft China has continued to penetrate deeply into increasingly important local markets, according to Ralph Haupter, corporate vice president, chairman and CEO of Microsoft Greater China Region.
“Since entering China 20 years ago, Microsoft has grown steadily in China and acquired a deeper understanding of the Chinese market. Our new strategy reflects our perception, emphasis and commitment to the China market,” Haupter said in a company statement. “In this new era, China and the entire Greater China Region will become the source of global innovations. Through comprehensive devices and services combined with cloud computing, Microsoft is working closely with the Chinese government, partners, customers and the academic world, entering this new era by leveraging our advantages.”
Haupter said the next fiscal year will be an important one for Microsoft, with the introduction of many new products and technologies.
“Our new leadership team in Greater China has helped develop a new strategy for customers and partners, deepening cooperation with governments of all levels to strengthen innovation in China. The team will popularize new technologies and explore new markets,” Haupter said.
According to Microsoft’s new strategy in China, the company plans to carry out the following goals:
• Expand Microsoft’s presence in local markets: Over the next five years, Microsoft will expand its presence in over 20 cities across 15 provinces by expanding local teams, improving local management and working closely with local governments, as well as providing cloud-based solutions for e-government, city management and citizen services.
• Accelerate local partnerships and expand service coverage: Microsoft plans to expand customer services, deliver joint services and solutions with partners. By the end of this year, Microsoft will set up its second technical support center in China to expand support for Chinese customers and partners.
• Hiring and education: Over the next five years, Microsoft plans to hire more employees in China to better serve and support its partners in China, foster talents for the Chinese software industry and improve the skills of Chinese youths.
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Edited by Amanda Ciccatelli
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