Satya Nadella, the Chief executive of Microsoft is the recent addition to the list of names of US Technology bosses who has been visiting China. The list also includes Mark Zuckerberg of Facebook and Tim Cook. There second largest economy of the world is said to be attracting various firms from the technology sector. The path is said to be very rocky with stiff competition and regulatory issues from the firms locally.
Nadella‘s Asian Tour’s last stop was Beijing apart from India and Singapore. CNBC was told by a spokesperson that an opening speech was given by the CEO of Microsoft during a developer event. Apart from that the Tsinghua Management School’s dean and the CEO also has a fireside chat. There were three main reasons’ why the visit to China was made by Nadella.
Getting developers
During his speech, he not only called China as being the world’s manufacturing hub but is also known to be the intelligence that is behind all manufacturing. As of now the company is presently not interested in developing any devices however want developers to come up with applications for its cloud service. This will also help in boosting the company’s revenue. In China, similar moves have been made by Facebook and Apple in order to get more developers on board to make apps for the company platforms. Microsoft also has plans to open the Azure loT lab in the country which is the cloud platform of the company.
Dealing with regulators
An investigation was opened by the State Administration fro Industry and Commerce of China in 2014. This was in regards to the anti monopoly law of the company which was related to file verification issues, bundle sales and compatibility related to the Office software and Windows as well as various other issues. The investigation is still going on and there was no comments given by the spokesperson of Microsoft. Meeting the authorities would not be unusual for Nadella. Time Cook last month also met with the internet regulator of China and on the other hand, Mark Zuckerberg meth the propaganda chief of the nation when he was visiting China. It is really important that the regulatory issues have to be resolved since the revenue of the technology companies could be under threat.
Pushing the company products
The company is trying to get into a deal with the Xiaomi, the Chinese smartphone maker so that it’s products like Skype and Office and even their software to be preinstalled in the devices of the smartphone maker. Microsoft is trying to focus on ensuring that their services and softwares across different devices.
US Technology companies are trying to strike various deals with the local players as a way tohelp in the expansion of their products within the country. Recently, a partnership with China Electronics Technology Group and Microsoft formed a joint venture for the deployment of Windows 10. This was done so that the state owned enterprises and Government agencies of China would have the latest Windows on their computer.