Business Week: Google and Zoho Challenge Microsoft Office in China and India

Beijing Time September 14 News, Business Weekly network version of the article said, Up-and-comer--google and Zoho in India and China to launch Low-cost, Easy-to-use Office software, aimed at challenging Microsoft's dominance. The following is an analytic article:

Privis-Mukherjee (Prithwis Mukerjee), a professor of management at the Indian Institute of Technology (Indian Institute of Technology) in eastern India, requires students to use a simple, Krogepur scheme to create spreadsheets. But Mukherjee did not choose Microsoft's spreadsheet software, but instead chose a spreadsheet software developed by Zoho, an obscure network software company, that was more flexible than Microsoft software. Mukherjee said: "Many people do not use Excel, this phenomenon has become a major challenge today." ”

Meeting this challenge is the two Up-and-coming--web search engine giant Google and network business office manufacturer Zoho. Microsoft dominates the U.S. and developing world Office software markets, but Google and Zoho want to weaken Microsoft's lead by reducing product prices and expanding use. "The Office software market is so big that Google and Zoho don't need to run Microsoft," said Frank Gens, an analyst at IDC, a market analyst. ”

Although the Asian Office software market is smaller than the United States, but the growth rate is twice times more than the United States. According to data from Gartner, a market analyst, 2008 Office software sales in the region accounted for 1.2 billion U.S. dollars, an increase of 13.2% per cent year-on-year, and office software in North America grew 6% to $6.7 billion. Microsoft's market share in both regions is 95%, and its market share has never slipped in the past three years.

New users Favor cloud computing

The key selling points of Google and Zoho are prices, which are attractive to small businesses and schools with tight budget controls. But Google and Zoho also want customers to accept the new type of software model-the "cloud computing" model for creating, editing, and sharing files online, rather than downloading them to a PC. Some companies have begun to recognise cloud computing applications, but many users continue to insist on using their more familiar premium desktop software for concerns about data privacy and disruption of services.

"Because many new PC users in India are not familiar with Microsoft Office and other desktop software, they are more receptive to cloud computing ideas," said Zoho CEO Srida-Wambu (Sridhar Vembu). Many of India's new companies have no qualms about cloud computing software, which we see as the main market growth opportunity. ”

Zoho has attracted about 400,000 users since its establishment in 1996 in Wambu, India's Chennai (Chennai), which employs more than 300 employees, and has hired more than 20% of its Indian and Chinese users, and Zoho has worked with Baidu in China to distribute its software. With PC, mobile and broadband internet demand growing faster than Western markets in India and China, Wambu expects its main revenue to come from Chinese and Indian customers over the next decade.

IDC estimates that India's Internet PC will grow from 32.9 million this year to 73.5 million in 2013. Users can also access Zoho and other network applications via smartphones.

3G network popularization will promote mobile Internet development

Zoho Mobile version of the software is very popular with Indian users, India's mobile phone sales far more than PC sales. Applications for mobile internet and customized software for Apple's iphone and other smartphones can allow students to do school work at home or elsewhere, which is not a convenience for PCs.

Companies can use mobile phone version of software equipment sales staff. In 2008, Mumbai data hosting company Netmagic Solutions contracted to use Zoho's customer relationship management software (CRM) to help sales teams in different offices share information about customer trends. The initial lack of connectivity in many parts of India was a problem. "Former salespeople complained about not being able to connect to Subramanian during a business trip, and now Zoho has increased the coverage of 3G wireless broadband networks in India," said Jayabalan Bramagnan, Netmagic's chief technology officer. We don't have to worry about the connection problem any more. ”

Google is also aggressively promoting Office software apps in India. Raj's-Sheith, senior product manager at Google Apps, said: "Our strategy in India is similar to that of the US, by leveraging Web performance to enable users to sign online and use them as quickly as possible." "Although the company's office software market share is only bucket compared with Microsoft, its market share in the Asia-Pacific region is slightly higher than its share of North America market." According to Gartner, Google's market share in the Asia-Pacific countries is 0.05%, with annual revenue of 600,000 U.S. dollars, 0.03% in North America and 2.1 million in annual revenue.

Microsoft plans to push web-based applications

Like Zoho, Google charges only to individuals and businesses that use certain features of its web software, relying mainly on Indian companies such as the legal outsourcing company Mindcrest, telecom Bharti Airtel and Internet service providers sify these big customers.

Google has signed up with more than 100 universities in India and recently translated its Gmail service into Hindi.

The desire to deliver software through the web has also had an impact on Microsoft. Microsoft's upcoming Office 2010 will launch web-based Office software. Microsoft is also developing Office software for smartphones.

John Cairns, general manager of Microsoft Office software Emerging Markets, says the bigger challenge for Microsoft in emerging markets is pirated software. Microsoft's strategy in India and China, he says, is to launch cheaper software and crack down on piracy. Microsoft, for example, has cut some versions of office prices by 40% last year. "The real challenge we face is the rampant piracy of software," Keynes said. ”