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 Microsoft's cloud computing products with each of India's 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

India's 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