Mist opportunity

24 May 2013 By John Foley Follow @johnsfoley

The software titan has for years been stuck in a piracy trap in China – many use its products, and few pay. Cloud-based services like Windows Azure are less prone to misuse. This time there are new problems: fierce competition, and politicians that favour domestic rivals.

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Microsoft plans to hire thousands of new employees in China for the launch of its cloud computing services and the roll-out of smartphones, chief executive Steve Ballmer said on May 22. The U.S. software maker currently has a workforce in the country of around 4,000.
Microsoft is due to launch Windows Azure, its cloud computing platform, in China in June, in partnership with local company 21ViaNet. Under the agreement, 21ViaNet would collect client revenues and pass a percentage on to Microsoft. China restricts foreign companies’ ability to offer “value added telecoms” services, leading most to partner with local players.
In 2011 Ballmer complained that China provided less revenue for Microsoft than the Netherlands, despite having a population more than 75 times bigger. According to the Business Software Alliance, 77 percent of software by value was pirated in 2011, based on an estimated illegal software market worth $9 billion.

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