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This is an archive article published on December 11, 2005

Dollar Bill

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LOVE him or hate him, there’s one undeniable fact about William ‘Bill’ H. Gates: 30 years after he set up Microsoft, the original geek continues to lord over what is no longer the New Economy: it is simply The Economy. For a man who looks like a frazzled school principal, Gates’ continuing role and relevance are testimony to a business acumen that quite clearly exceeds that of an ordinary human being.

It’s even more amazing when one considers his star status in India. Indians, as a people, are so difficult to impress, even when confronted with the world’s richest man as well as its top philanthropist on his fourth visit to India. Sheer success or money has never been enough; the respect comes from something else.

Indeed, in a country where the personal computer has found its way to the puja room as a tool to be worshipped for advancement and knowledge, Gates’ iconic status among young and not-so-young Indians tells us a lot about ourselves—and where we seek to be. And if India is on its way to become a major hub for Microsoft’s R&D and technical support, that is an integral part of this vision.

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But there’s more. It becomes clear when one looks at India’s requirements to quickly build a digital society—and how Microsoft, with its sheer dominance in PC operating systems and office productivity software, is a key player in making that happen. And therein lies the rub: Mr Gates is an astute businessman. And his investments are not driven by philanthropy.

THE fact remains that the open-source movement remains on the fringes in India. Linux has under five per cent marketshare in the three key segments: enterprise, government and education. And though a host of firms have started adopting free software—and a Linux-based PC can now be bought in India—the open-source movement is yet to fully take wing.

While there’s clear political support for open source—China is a good example of how such patronage can make a big difference to Microsoft’s fortunes—a key issue with Linux remains the absence of a viable and working service-and-support network. Microsoft is clearly looking at bridging this gap when Gates recently announced that part of its $1.7 billion investment will go towards supporting the IT Ministry’s plan to establish 100,000 Common Service Centres that will offer affordable products, service, and support.

The key here, of course, is affordability. If Microsoft is to credibly win the battle against free software—and convince sceptical governments that it can do a better job—Gates must be in a position to offer a cut-price for Windows. The pricing of its multi-lingual Windows XP Starter, specifically intended for first-time PC users in India, will be a good indicator of how serious Gates is about growing the Indian market.

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GLOBALLY, there’s no denying that even after Gates identified the Internet as the Next Big Thing, it is Google that has addressed the fundamental problem of how to make money on the Net. And while it’s early days yet, Gates’ turnaround in Net offerings and new consumer products shows that he has been quick to react and claw back. Everyone loves the new challenger, he said recently, but don’t underestimate me. No one is, really, but what will it take to get Bill to truly open his Windows for India?

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