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Microsoft ARD Shares Perspective on Lifting China's Innovation into the Future

MSFT, BIOGY

Eight years into its formation, Microsoft ARD continues to play a key role in elevating local innovation amidst a rapidly transforming China

BEIJING, Jan. 20, 2014 /PRNewswire/ -- The Microsoft Asia-Pacific Research & Development Group (ARD) held its Open Day event today and shared its perspective on driving innovation, which includes tapping into technological mega-trends and establishing a strategic ecosystem of partnerships. The event also highlighted the importance of innovation amidst China's rapidly changing economy and technological landscape, and reinforced Microsoft ARD's role in lifting Chinese innovation into becoming globally competitive technologies.

(Photo: http://photos.prnasia.com/prnh/20140120/0861400387 )

With the transition to a technology-based economy, technological innovation has become a true force of change in the world, including China. According to Gartner, IT spending by both Chinese consumers and enterprise end-users grew by nearly 14 per cent in 2012, and IT spending in China is expected to have grown from USD 301 billion in 2012 to USD 323 billion in 2013, offering substantial opportunities to technology and service providers.

Said Microsoft Chairman Dr. Ya-Qin Zhang, "In its eighth year, Microsoft ARD continues its purpose as a global base for fundamental research, technological incubation and product development. Our theme, 'Leading Innovation for Future Transformation', reinforces Microsoft's status as a catalyst for transformation and innovation, as well as Microsoft ARD's role in providing an integrated platform for business groups and product teams to drive innovation."

In discussing Microsoft ARD's innovation perspective, Dr. Zhang also underlined the need for agility and flexibility in innovation, not only in terms of development processes but also to adapt to China's changing economy and technological landscape and ride on the latest mega-trends - cloud computing, big data, mobile apps and social networks. Microsoft ARD's motto of "Innovation in China, Innovation for the World" illuminates the group's vision to nurture and elevate local innovation to world-class technology on a global platform.

Innovative Solutions for the Future

Various innovative solutions were also showcased by Chief Technology Officer Prakash Sundaresan, giving audiences a glimpse into innovative solutions for the future. In particular, four "star demonstrations" for Bing Smart Search, CityNext, PowerBI and Xbox One were featured on-stage. Technologies from multiple engineering groups within Microsoft ARD were also shown via booth demonstrations at Open Day, and focused on trends such as cloud computing, big data, and devices and services.

Mr. Sundaresan said, "Microsoft's recent change in focus to 'devices plus services' is an example of how Microsoft is adapting to the shift in IT infrastructure towards the cloud. We are seeing more devices and services taking advantage of the cloud - users are able to access the cloud from their personal devices, anytime and anywhere. In line with this change, Microsoft envisions the user experience as an ecosystem comprising a complete set of devices and services, connected through a single user interface and with full access to the cloud."

Ecosystem Next

With a shift in focus to devices and services connected to the cloud, Microsoft's industry value chain and previously established ecosystems will inevitably see change as well. Microsoft believes that in order for a company to thrive, it needs to coexist and prosper with customers, partners, industries and countries through the presence of a mature ecosystem with flexibility. "Ecosystem Next" is Microsoft ARD's philosophy to explore the next generation in collaboration. Microsoft works with public, private and hybrid cloud service vendors to foster an ecosystem that serves as a pioneer in standards and a model platform, with optimal collaboration.

Mr. Samuel Shen, Microsoft ARD's Chief Operating Officer, added, "Microsoft ARD is committed to developing an optimal, connected ecosystem for innovation by forging key partnerships and collaborating across the community and industry. 'Ecosystem Next' is an example of our agility and flexibility in aligning an overall focus on devices and services. At Microsoft, our role in driving innovation is to bring the best people together, so they can come up with ideas that deliver real impact."

On the Path for Innovation

Looking back at 2013, it is clear that in the past Microsoft and Microsoft ARD have been making large strides in their innovation journey. In line with Microsoft's devices and services strategy, many milestones have been achieved along the way (please refer to appendix: "2013 Microsoft ARD Key Developments").

Said Dr. Zhang, "Over the past few decades, we can see that each decade has brought on its own huge revolution. Revolutions arrive in waves, and as an industry leader Microsoft has the strength and confidence to find the right focus, align its strategy and withstand each revolution. We will grow with our industry partners and the Chinese industry as a whole, and reach greater heights with innovation as the leading force."

About Microsoft

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential. To find out more about Microsoft in China, please visit: www.microsoft.com/china

Appendix

2013 Microsoft ARD Key Developments

-- From July 2012 till present, Microsoft has been running the Microsoft Ventures Accelerator project in China to support start-ups and help them achieve innovative success. In just a year and a half, 47 start-ups have graduated from the Accelerator. These start-ups cover a range of industries, including finance, Internet services, oil, farming and teaching. Within these 47 start-ups, 90 per cent of participants have received funding from investors. With the recent start of the 4th round of the Accelerator project, 19 additional startups have joined.

-- In June 2013, Microsoft officially launched public preview versions of Windows Azure and Office 365 in China, in collaboration with 21Vianet. This makes Microsoft the first international company to offer public, private and hybrid cloud services in China. At present, Windows Azure has effectively helped more than 2,000 enterprise customers fully enjoy the benefits of cloud services, including more than 70 high-profile enterprises like Coca-Cola and the Ren Ren Network.

-- In September 2013, the government announced that it will, for a trial period, allow gaming consoles and related entertainment software to be made within Shanghai's free trade zone and sold within China, subject to standard local inspections on multimedia goods. This heralds the impending arrival of Microsoft's entertainment offerings into China.

-- In January 2014, Microsoft Open Tech Shanghai was launched to facilitate interactions between Microsoft proprietary development processes and the company's open innovation efforts by advancing investments on interoperability, open standards and open source.

SOURCE Microsoft Asia-Pacific Research & Development Group



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