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Microsoft, Infosys set for alliance

Our Bureau

NEW DELHI, Sept. 13

Microsoft Corp and Infosys Technologies are joining hands to form an alliance, marking the coming together of a global softwarw giant and a wannabe global information technology major.

But there is an element of suspense as to what kind of an alliance these two companies are going to announce tomorrow, during Microsoft's Founder, Mr Bill Gates' second visit to India.

Software industry analysts contacted by Business Line said the Microsoft-Infosys alliance could either be in the area of a joint product development/marketing or in the latter's .NET initiatives.

A brief note sent by Infosys to the stock exchanges did not reveal much except that an announcement to this effect will be made on Thursday, giving rise to wild guesses and speculations in the industry on the possible tie-ups between the companies.

When contacted, the Microsoft India Managing Director, Mr Sanjay Mirchandani, declined to comment on the issue. So did an Infosys spokesperson, who would only say that an announcement is due at tomorrow's press conference by Mr Gates.

Microsoft had earlier announced that Mr Gates would be dwelling on the recently unveiled .NET initiative, which seeks to

build an advanced new generation software that melds computing and communications in a revolutionary new way. Microsoft has to work with a whole lot of companies around the world to make .NET a success.

If Infosys partners with Microsoft for the .NET initiative, it will be the second company in India to do so. Hyderabad-based Satyam Computers has already been working with Microsoft in this technology.

It may be recalled that in January this year, Microsoft had appointed Wipro Technologies _ another domestic IT major _ as a partner for outsourcing software development and testing. Both the companies are collaborating to enhance the capabilities around Windows 2000, Windows CE and Internet applications through this tie-up.

These alliances and Mr Gates' second visit to India in three years signify the importance India occupies in the future strategies of the company, often accused of its monopolistic style of operations.

Microsoft is still fighting an anti-trust case with the US Government on these charges, which could lead to a break-up of the company. Recently, in India too, a case was filed before the Monopolies and Restrictive Trade Practices Commission (MRTPC) on si milar charges.

Nevertheless, Microsoft is bullish on India. It has already announced the intention to make its Hyderabad facility as its biggest development centre outside the Redmond headquarters.

Started in August 1998 at the Hitec City with 20 people, the centre today has 85 people. By the end of 2001, this number is to go up to 200.Gates to meet Mahajan: During his one-day visit, Mr Gates will meet the Union IT Minister, Mr Pramod Mahajan, at the latter's office in Electronics Niketan. Among other things, Mr Mahajan is expected to seek Microsoft's help in setting up in India the prestigious Media Lab of the Massachusetts Institute of Technology (MIT), official sources said.

He will also meet officials of the Government and Chief Ministers of Andhra Pradesh, Madhya Pradesh and Gujarat, among others.

Later, he will address a three-hour media conference, where the announcement on the alliance with Infosys would be made. In another session in the evening, he would unveil the .NET initiatives, company officials said.

Our Bangalore Bureau reports: The Microsoft-Infosys partnership is being seen as ``historic'' in IT industry circles here.

Industry analysts here predict that the new alliance is likely to focus on e-commerce and also on developing newer solutions.

Infosys has already announced a planned focus on e-commerce and Microsoft is expected to look at this area, especially after the US court's rulings in the anti-trust case.

The alliance is expected to accelerate growth opportunities for both the companies. It is expected to help Microsoft expand its presence in the South Asian market.

Infosys recently set up its Asia Pacific headquarters in Hong Kong and plans to open a development centre in Beijing to cater to the Chinese and Japanese markets.

Having grown organically to over $200 million in revenues, Infosys had planned a strategy to tap alternative means of growth including acquisitions and selective strategic investments. This strategic alliance with Microsoft is expected to be a step in th at direction.