Microsoft seeking long-term development in China

Microsoft Chairman Bill Gates announced during his visit to China last month that his company will further expand its research and development (R&D) institutes in Beijing, Shanghai and Shenzhen, as well as invest in R&D parks in Beijing and Shanghai.

Industry professionals believe that this indicates China's position is of increasing importance in Microsoft's global strategy.

Recently, Dr. Zhang Yaqin, Vice President of Microsoft and President of Microsoft's China Research and Development Group, recently spoke with a reporter from People's Daily.

Microsoft seeking long-term development in the country

There is a simple diagram on the wall of Zhang's conference room.

"This is the general plan for Microsoft's R&D park in Shanghai, which was just finished yesterday," Zhang said.

Reporter: Microsoft China R&D Group is currently Microsoft's largest R&D group outside the United States. It also has the most complete functions. Why did Microsoft decide to build more R&D parks in China?

Zhang: Actually, the decision itself is not new at all. Right after I came back to China, I started thinking about the general plan. At the very beginning I only had a simple structure. Now the plan is almost complete. Microsoft is seeking long-term development in China, and therefore has a long-term strategy; now our R&D layout is becoming more complete, standardized and systematic.

Site selection in Beijing, Shanghai and Shenzhen: a variety of factors to consider

Reporter: What are the focuses of the Microsoft China R&D Group in the future? Is there any responsibility division between the R&D institutes in Beijing, Shanghai and Shenzhen?

Zhang: Overall, we have identified five major directions for R&D, namely: mobile communications and embedded systems, internet technology products and services, digital entertainment, servers and tools, and emerging markets.

Considering a variety of factors, mainly human resources, market and clients, we've decided to develop our R&D institutes in Beijing, Shanghai and Shenzhen. Beijing and Shanghai have advantages in terms of human resources. Shenzhen has a better market and more clients. We do not require all the institutes to develop their research in all five areas. Focuses for each R&D parks can be adjusted in accordance with the actual situation.

Microsoft bought its first piece of land overseas

In the Bo'ao Forum, Gates announced that Microsoft will allocate 60% of its R&D resources in Asia in the near future.

Reporter: What Microsoft did this time is quite different from the past, isn't it?

Zhang: Microsoft has never bought land outside the United States before. We always rented land. This time we've decided to invest a large amount of money in buying a piece of land in China. It actually demonstrates our long-term commitment to developing alongside China's information industry, as well as our confidence in the Chinese market.

Reporter: Was it easy to convince Microsoft's core leadership to buy land in China?

Zhang: I think if this proposal had been made eight years ago, it would have been totally impossible. However, China's economic development, market growth and accumulation of human resources in the past eight years have enhanced our confidence. In fact, the decision was made by Mr. Steve Ballmer himself after visiting Beijing and Shanghai in person.

China's name comes up at every board meeting

Reporter: Is the establishment of the R&D parks an important part of Microsoft's global strategy?

Zhang: China's economy has developed rapidly in the last 30 years, especially the past 10 years. It has become the world's source of innovation and talent. Obviously it will become a core part of Microsoft's global strategy.

In fact, China is very important to many companies. There is a saying: for the world's top 500 companies, any which have not made China a topical issue will have no future. For example, at every Microsoft board meeting we will discuss certain topics related to China, such as the Chinese market, research and development, human resources, the industrial chain, et cetera, all of which are very important topics.

Chinese wisdom benefiting the world

Reporter: Will the achievements of Microsoft China R&D Group benefit the rest of Asia?

Zhang: China will be the first beneficiary. Using China as the foundation, the benefits of our R&D will be felt in Asia, and then the entire world. In fact, Microsoft's China R&D Group handles 50-50 tasks in developing products for China and other emerging markets as well as the whole world. The five areas of R&D mentioned earlier also reflect global demand.

Our core idea is "Chinese wisdom benefiting the world". This statement will become Microsoft China R&D Group's motto.

Mobile internet is the most important sector

Reporter: What is the priority of mobile internet in Microsoft China R&D strategy?

Zhang: Of our five R&D areas, mobile communication and mobile internet are the most important.

In the near future, mobile internet will be a highlight. I personally do not believe that the mobile internet will completely replace fixed internet. But undoubtedly, it will create more opportunities for us. The two will coexist.

It should be noted that industrial integration has become a trend. Internet, mobile phones and PCs are gradually being integrated. The new industry takes advantage of the original three and combines internet connectivity, wireless mobile functions and PC computing power. This is an emerging industry which will generate many opportunities for us.

This is a new undertaking, not only for Microsoft, but for all of us. It requires that everyone explore the possibility of innovation and cooperation and seek win-win results.

By People Daily On line