We are committed to widen our channel base

The main challenge is creating a product that will cater to a large number
of users

When did MS start its hardware operation and what are its major product
offerings?

Microsoft Hardware has been in the hardware business for over 28 years
worldwide and has pioneered 19 of the 25 product categories in its portfolio. We
have also been first to introduce innovative products such as optical mice and
laser mice. We have been the pioneer in bringing ergonomically-friendly
keyboards and mice to the Indian customer and all this has enabled the company
to gain an enviable position in the market. The latest of the innovations has
been the Blue Track technology which uses a powerful new tracking engine that
combines 'blue specular' optics with a blue beam. Specular optics is high-angle
imaging optics that generates an exact replica of the surface instead of blurry,
out of focus images, like leading laser mice.

Microsoft Hardware is also the pioneer in the HD webcam technology, which has
revolutionized the webcam market in India by providing the most innovative and
revolutionary technology at the best price to the Indian consumers. The recent
products launched in this category include the LifeCam cinema and LifeCam VX
2000, which has been very well received in the Indian market.

According to the latest IDC report, the PC market is expected to grow 25
percent in 2010 and we hope to grow with this growth in PC sales with continuous
innovation.

How many channel partners MS India has in the hardware business? Does the
company plan to extend its channel base by the end of this year?

MS hardware has more than 4,000 channel partners in 100 cities across the
country. The company is committed to widen its channel base in the country with
time.

What is Microsoft's go-to-market strategy for its hardware business in
India?

The computer peripherals industry is gradually transforming to become a
trendy and stylish segment. Computer peripherals are no longer looked upon as
equipment to aid your work on the PC. Nowadays, users recognize them as
personality reflectors. Therefore, Microsoft has invested a lot of research and
indepth study about the different personality traits before designing any such
stylish products. The main challenge here is creating a product that will cater
to a large number of users and also help them to identify with it. Microsoft
Hardware is committed to provide better experience and accessibility to
customers with its range of gaming and computer peripherals products.

How do you enable your channels to earn more profits?

Microsoft's focus has been on long-term partnerships with their business
partners instead of short-term margins. It has its standard policy on margins
that paves the way for more transparent and healthy business among the dealer
community. All incentives are quarterly and are directly worked out by Microsoft
Hardware, which is then paid to the dealer community. It is assured that the
partners are benefited. Therefore, channel partners are bound to gain through
such a transparent policy. We also run regular schemes and offers for the
channel to ensure that our partners are benefited.

What are Microsoft's present and future plans for hardware business in
India?

The growth in the market will be more in tier-2 and tier-3 cities as the
purchasing power in these cities has greatly increased. Therefore, newer
business opportunities will result in newer tie-ups. In an effort to attract
retailers in these markets, companies will size up their marketing strategies
and plans to reach out to them as effectively as possible. Microsoft Hardware is
committed to provide better experience and accessibility to customers with its
range of gaming and computer peripherals products. We aim to continue offering
world class products to the customer, which is a true blend of style and
science. In addition, we also see a great opportunity in tier-2 and tier-3 towns
where consumers and small businessmen have recognized the importance of
computing.

Bharat Sharma

bharats@cybermedia.co.in