Microsoft in India Case Study Analysis
GLOBAL ENVIRONMENT OF BUSINESS
SUBMITTED BY LIGIA C. POPESCU
DATE NOVEMBER 5, 2011
INTRO
In 2009, Microsoft India was creating their Go-To-Market strategy with their new cloud computing product offerings. To meet the needs of the various needs of the IT market, they had developed three types of products – IaaS (Infrastructure as a Service), SaaS (Software as a Service) and PaaS (Platform as a Service). The market was separated into three segments – Government and the public sector, large corporations (enterprises), and small to medium sized business (SMBs). Each segment had specific characteristics and concerns, along with concerns and challenges. Arora had to find a way to match their needs with his products. Arora was charged with creating a go-to-market strategy and pricing structure to match Microsofts cloud computing products with each of Indias market segments.
CLOUD COMPUTING MARKETIN IN INDIA
KEY DRIVERS
Demand for improving high-speed connectivity, greater flexibility in services, greener operations, and easy scalability
Estimated growth for Cloud computing in the Indian market is $1 billion (estimated global growth was $70 billion by 2015
More companies were expected to outsource their IT operations through cloud computing
Emerging SMB segment investing in IT infrastructure
Indian government was implementing new initiatives to grow SMB sector
Increase in enterprise data center expenditure
Indias service industry accounted for 55% of GDP, with IT and Technology-enabled services contributing to 33% of total output of services in 2000
Competition among third-party data center market (suppliers)
Maturation of traditional IT market
Total domestic consumption of IT in India expected to reach $45billion in 2013 – growing 15% annually
BARRIERS TO ENTRY
Ecosystem maturity
Low customer awareness of available IT services, benefits and trends in IT products sector
Low connectivity – underdeveloped infrastructure –limited Internet reach and limited bandwidth
CHALLENGES TO ENTRY
Legal and regulatory compliance and audits -governments mandated data stored on servers had to be
located inside