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Tuesday, September 25, 2012

Microsoft Plans to Expand in China

Microsoft is definitely moving its forces behind the bamboo curtain, as the company announced it is going to hire over 1000 personnel in China.

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Despite the fact that Redmond has already hired 4,500 staff in the country, Microsoft claims it needs more people if it hopes to dominate the local market.

In the meantime, industry experts point out that Microsoft actually has a love/hate relationship with this country. The matter is that Microsoft loves the fact that there’re plenty of customers willing to buy its products, but at the same time it hates the fact that most of its potential customers choose software piracy.

According to Ralph Haupter, CEO for Microsoft's Greater China operation, about 1000 new employees will be hired in R&D, sales, marketing and services. The purpose of doing this is clear: the software giant is planning to reach potential Chinese customers like local governments and public institutions, and it needs more people to do so.

In the meantime, Microsoft has been launching lawsuits against a number of the bigger named local companies in a bid to fix its piracy problems. For instance, this past January, the software giant sued Gome Electrical Appliances, the largest electronics retailer in the country, for installing pirated versions of Microsoft’s software on its personal computers.

In addition, Microsoft claimed that it also wants to boost China R&D spending by 15% over 2013. At the moment, the company has $500 million invested every year on research and development in China. Finally, the software giant is currently building a large cloud computing centre in Shanghai which will also require about 600 people to work there.

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