Following the development of the lending system in Romania, Microsoft is now focusing on its idea of selling even its software in instalments, which would undoubtedly push the market higher.
One of the concepts currently under discussion at Microsoft is the model for supplying software in the same way as services. Customers will be able to opt between monthly payments, as with normal post-paid phone bills, and advance payment, as with prepaid systems.
“The Windows operating system, and then the Office package, could be paid for using this formula,” explained Silviu Hotaran, the manager of Microsoft’s South-East Europe division.
This would be complementary to the solution whereby the Windows platform or applications are acquired in instalments with the computers. When customers buy a computer in instalments, for several additional dollars per month they could have a complete and legal Windows system. This will boost the company’s sales, says the Microsoft manager.
Mr Hotaran believes that 2005 will witness even higher growth for businesses in Romania and the Eastern European region. “In Romania, we will take the major, countrywide projects further, together with the domestic software industry,” he explained. The company is trying to cover the geography of the country in a better way by opening offices in Transylvania, Moldova, Constanta, and the southern region.
The PC industry, though still an opportunity area, is increasingly becoming a challenge for Microsoft. This is due to the fact that, though more than 20% of computers sold use the Linux operating system, they largely operate on pirate Windows platforms. “In practice, these computers are sold without an operating system,” he said.
Mr Hotaran believes the economy is heading in the right direction and that the domestic currency is stronger, as witnessed by higher consumption.
Lending mechanisms, purchasing in instalments and the leasing system have developed and this is reflected in the increased number of PCs that have entered the market, especially those intended for private consumers.
In 2004, Microsoft Romania registered sustained growth, with the company’s cash-ins rising by 30% compared with 2003, and the company’s annual average growth reaching over 60%,” Mr Hotaran told Ziarul Financiar.
Microsoft Romania enjoyed strong growth last year also thanks to the strategic partnership it signed with the Romanian government. dan.dragomir@zf.ro