M'sia: Microsoft ramps up midmarket investments

By Cordelia Lee, ZDNet Asia
Thursday, April 14, 2005 03:26 PM
Microsoft is intensifying its focus on the local midmarket segment through larger infrastructure investments, more solutions and products, and increased partner engagements.

The company is pumping in an estimated RM23 million (US$6.05 million) into channel development programs this year, covering technical, business and sales training to some 9,000 partners from the SMB (small and midsize businesses) market space.

"We have intensified our investment in the partner space over the past 12 months...," said Ananth Lazarus, Microsoft's director of small and mid-market solutions and partners. "Our investment in the last fiscal year was RM12 million (US$3.16 million)."

According to the Redmond, Wash.-based software giant, its partnership base has grown by 40 percent over the last two years to 5,000 currently. The firm said it expanded the number of ISV (independent software vendors) partners in Malaysia from 600 to 800.

The SMB market in Malaysia, comprising around 380,000 companies, forms the bedrock of the country's industrial sector, contributing some 92 percent to the local economy. IDC estimates that this segment is increasing its IT investments at a compounded annual growth rate of 11.4 percent from 2002 to 2007.

Lazarus added that Microsoft intends to develop partner enrichment programs to support more partners as it increases its direct presence in Malaysian states such as Penang, Johor, and Kuching.

Microsoft's midmarket products include offerings like Office 2003 Small Business Edition, Windows Small Business Server 2003, and enterprise software packages under the Microsoft Business Solutions portfolio.


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