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Software warriors enter the Asian arena
By Martin Young

HUA HIN, Thailand - As the software developers of the world continue to expand their products in pursuit of market domination, a new battlefield has emerged and the power struggle for control is stronger than ever. Asia is the latest arena for digital warfare, and the two heavyweights locked in combat at the moment are Microsoft and Linux.

The two competitors are offering regionally specific software to entice the world's most rapidly expanding information-technology (IT) market. As open-source Linux software gains momentum in Asia, Microsoft is pulling out the big guns with a new operating system to counter the threat.

Microsoft announced a simplified version of its flagship operating system, Windows XP, last month as a low-cost alternative for developing technology markets. According to the software giant, the system, officially called Windows XP Starter Edition (SE), is "designed to offer an affordable and easy-to-use entry point to the Windows family of products that is tailored to local markets, in local languages, and is compatible with a wide range of Windows-based applications and devices".

Starting next month, Windows XP Starter Edition will ship on new low-cost desktop personal computers available through PC original equipment manufacturers (OEMs) and Microsoft OEM distributors in Thailand, Malaysia and Indonesia. Microsoft says it will be "the most affordable Windows operating system offered to date", though the price has yet to be announced. The company says it will also work closely with governments in a 12-month pilot program to study and evaluate the benefits created. Industry analysts have described this as preemptive move to keep market share that might otherwise be taken away by rival software Linux.

However, even prior to any official release the software has come under the scrutiny of several research analysts who were critical of its limitations. One of the most significant was the limitation on running applications under Windows XP SE to only three concurrently. Dion Wiggins, vice president and research director of Gartner, said, "Microsoft could have made a big difference with this product, but is more likely to be seen as pushing the upgrade path and frustrating users rather than delivering the value that this product is capable of, due to unnecessary limitations." There was also the fear that some users will resort to using pirate full versions of the software rather than accepting a product with so many restrictions.

This view conflicts with that of Microsoft, which is aiming to reduce piracy by introducing more cost-effective software to developing targeted markets. It appears that Microsoft has done its homework after a year-long survey of more than 1,000 computer users in Thailand, the results of which were key factors in the design of the new system and its operating parameters. When released, the product will come bundled with low-cost PCs from government-funded projects in Malaysia and Thailand. This again may be viewed as directly competing with the existing Linux software that is currently offered for free under such schemes.

The progress of Linux in Asia, more significantly the development of a localized standard version of the software called Asianux, has caused quite a stir in Microsoft's research labs. Asianux is a Linux server operating system that was co-developed by Chinese leading Linux vendor Red Flag Software Co Ltd and Japanese Linux vendor Miracle Linux Corp at Oracle's research center in Beijing. It aims at the common-standard Enterprise Linux platform for systems in Asia. While this software does not directly compete with Windows XP SE, it does emphasize the lengths gone to in the struggle for domination over the Asian IT market.

Enterprises in China and Japan are expected to choose Asianux as their primary operating platform, as well as companies in South Korea. Chris Zhao, Red Flag's acting president, is confident that the situation is set to change. "We have been in discussions with Korean partners regarding Asianux. We should be able to decide on a Korean partner within two months," reporters were told at the Oracle OpenWorld technology conference held in Shanghai in July. "Asianux is a milestone in the maturation of Linux in the entire region," said Charles Phillips, Oracle's co-president, adding: "Linux already has a lot of momentum throughout Asia before this, and now it's going to accelerate."

Several leading IT companies such as Dell, Advanced Micro Devices (AMD), NEC, Sun Microsystems and Hewlett-Packard (HP) have all expressed their willingness to support Asianux, with more than 40 vendors having signed up for certification already. Overall Linux growth in Asia is expected to continue significantly over the next few years. According to IDC Japan statistics, the Linux market in China is expected to reach US$41.9 million by 2008, and in Japan $105 million by 2007.

With more now than ever to play for in Asia, software companies are developing specialized products, which can only mean more options available to both the individual and the corporation. Price and compatibility seem to be the greatest issues that Asian consumers face when considering the implementation of new software. The Asian market is no longer prepared to pay Western prices for these products and software developers are finally taking notice. The success of Microsoft's "lite", Asian-friendly version of Windows has yet to be seen. This can also be said for the increase of Linux acceptance throughout the region. The one fact that is known is that the competition will continue to grow stronger.

(Copyright 2004 Asia Times Online Ltd. All rights reserved. Please contact content@atimes.com for information on our sales and syndication policies.)
 
Sep 8, 2004




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