MS, TAIT to educate partners about selling genuine software

Mumbai: Mumbai-based Trade Association of IT (TAIT) held an event in conjunction with Microsoft yesterday to drive home the message on the need to sell genuine software.

Vipul Sant, Director-Genuine Software Initiative (GSI), Microsoft Corp India noted that most channel partners are aware of the need to sell genuine software and the risks involved in promoting fake software, but are often unable to articulate it effectively to their customers. “We have noticed that if the messaging is conveyed appropriately to customers, then the instances of selling genuine software go up by 50 to 60 percent,” he noted.

This was precisely why he along with Brian Campbell, Senior Director-Emerging Markets, GSI, Microsoft Corp and Keith Beeman, GM, Microsoft Corporation were in Mumbai to interact with close to 100 partners and teach partners how to highlight to their customers the benefits of opting for genuine software and addressing all the questions that end-users might have about doing so.

Sant added that Microsoft has been working with more than 34 associations across the country over the past two years to get ground level feedback from partners about the challenges they face when they try to sell genuine software and come up with solutions. One constant refrain that they heard from partners was about the high price of genuine software which dissuaded most takers.

On the basis of this feedback the GSI team was able to convince Microsoft's product team to come up with versions of Windows and Vista OS, which have selective features for different buyer segments, and ensure price reduction by default.

Given the fact that the piracy rates are higher in rural cities as compared to metro towns, is it not pertinent that Microsoft work with the associations in smaller cities to percolate its messaging to the end customers? While admitted this was much needed, Campbell elucidated that this was why Microsoft started engaging with associations in the recent past and had candid discussions with them and has been able to have regular interactions with over 34 associations.

Sant added, “Having the breadth of the channel associations' buy in is important and we have been trying to do that. This is a continuous effort and we have made good inroads, and over time will increase our engagement with associations in the rural cities as well.”

The reason why the attach rate for genuine software is higher in metros is also because of high PC growth, customer mindset towards going for products which give peace of mind. As against it, selling authentic software needs more effort in the smaller cities, which is why Sant assured that Microsoft would work more with the local IT associations in C and D-class towns.

As a result of its GSI initiatives, Microsoft has been able to bring down its piracy levels down from 74 percent to 69 percent in 2007. Said Beeman, “India's piracy levels are still higher than Brazil, Russia and China. We would ideally like to bring it down to 50 percent soon.” According to IDC's Economic Impact of Piracy, a 10 percent drop in piracy, which is what Microsoft is aiming at in India, over three years, means a net infusion of $200 million of tax revenues to the government, additional 44,000 new jobs and $3.1 billion in economic growth in India.

This is why Microsoft has segmented its messaging for different customers verticals. To the enterprises, it talks about how having genuine software can ensure their global image and they can adhere to international standards and regulatory compliance. It also offers complimentary software asset management exercises for these companies and has done over 500 reviews till date.

It gets the smaller enterprises sensitized about the need to ensure they have original software and ask them to look for the 'Certificate of Authenticity' when they buy Microsoft products, so that they do not suffer from system downtime. For end-customers the vendor talks about the need for repeated service calls due to loading of fake software, which can pinch their pockets.

But is the SI community taking this message across to their customers or in a bid to close a deal do they end up offering fake software? Chetan Shah of Xpress Computers said that there was a need amongst SIs to get the right collateral in the form of dockets, sales material, CDs, etc that could be shared with customers to convince them to buy genuine software. “Over time, we have been getting this support from Microsoft, which has left the door a little more open for us to close deals,” he noted.

Rushab Shah of Graham Infotech also noted that for most SIs the hardware or software component of the deal was not critical because the ratio is still around 70:30. “So asking customers to go for genuine software does not jeopardize the entire deal for SIs,” he added.

Chetan Shah also talked about the increasing adoption of genuine software because of the repeated downtime that customers would face if they loaded fake versions. “This would mean a direct expense, which is why they are more susceptible to opting for the genuine thing,” he said. Besides this, he pointed out that by insisting on selling genuine Microsoft software, his position has been elevated from Registered Partner to Gold Partner where he enjoys a lot more business privileges and support.

With the right amount of cajoling, pushing and shoving, where needed, Microsoft seems confident of bringing its piracy rates down drastically in India this year. But it might have to do much more to get India to rub shoulders with countries with the lowest piracy rates, which according to BSA are the US (21 percent), New Zealand (23 percent), Austria (26 percent) or Finland (26 percent).