Custom spoils Windows 7 launch party

New Delhi: The launch of Windows 7 from Microsoft in India on October 22 seemed to me more hype than matter for the channel. The company as well as its partners waited in anticipation to see if Windows 7 will be the product that will set the cash registers ringing.

For Microsoft the launch was all the more important after the disappointing performance of Vista and the phasing out of Windows XP. However, despite creating a buzz in the market, and hype with the consumers, the end result has not been very encouraging since availability of packaged software among resellers is a major issue.

According to one of the distributors, Windows 7 is currently available for its customers in India through original equipment manufacturers (OEMs) only and customers who want to buy only the software will have to wait as the stock is still waiting for custom clearance. The reason for the delay in billing of the stock is because of the double taxation that is being levied on the packaged software during the point of import.

Throwing light about what caused the delay in availability of Windows 7 in India, Alok Gupta of Delhi-based Softmart Solutions explained, “As per the rules understood by distributors, the Finance Minister had announced during the budget that with effect Sep 1, 2009, software importers will be given tax exemption provided they give assurance to the custom duty that they will they will charge service tax. Since this is the first consignment in which Windows in being imported in such a manner it is bound to take the custom department some time to understand what all documents are required for the process so that that can be the mandate henceforth. As the situation stands, the first lot of documents has been provided and by the end of next week shipments should start.”

Officials from Ingram Micro on the other hand informed that while the shipment has started but it will take time to get a consolidated sales figure. “We have started shipping Windows 7 as an OEM product. Invoicing has started and bookings have been logged. We have distributed the software across the country in form of OEM product and licenses and we are getting a good response from the customers,” commented Aloysius Fernandes, Director of Ingram Micro India.

When contacted, a Microsoft executive informed that since the launch in India has just taken place, it will take some time in getting the product available across the regions. He further shared that in East no billing has been done so far and 250 units of software would be billed to OEM partners by November 10.

Giving a status of Windows 7 availability in North India, KK Jha of Delhi-based KK Software said, “The response has been excellent so far. We have managed to sell 1,000 units in one day. Ingram Micro got the first consignment of about 3,500 units out of which 1,000 were given to us. The delay in availability is because the consignment is stuck as they have not got clearance from the custom department. I expect that once Windows 7 shipment starts we will be able to sell about 7,000-10,000 units a month.”

Welcoming the clarity provided by Central Board of Excise and Customs on software taxation, a Microsoft spokesperson said, “We are delighted that with this clarification, retail packs of Windows 7 will be available shortly, and consumers can upgrade their existing PCs for a faster, smarter and more secure computing experience.”

Giving a positive feedback about the sale of Windows 7 in South India, Sudarsan Ranganathan of Chennai-based Veeras Infotek mentioned, “The response to Windows 7 had been very good and we are very upbeat about selling it. Although at this point the sales are not very high but the interest level is high.”

The software giant has multiple distributors in the market and while a few of them have started billing the product and have got positive feedback others are still waiting for the availability of the software.