Microsoft’s revenue in India more than doubled last year, helped by users upgrading their Windows operating systems with bundled Office offerings, and the company sold products and licences worth Rs 1,973.94 crore in the country, according to a filing at the Registrar of Companies.
Microsoft Corporation India Private Limited (MCIPL), which markets and sells Microsoft products in India, said overall revenue in the country grew toRs 2,245 crore in 2013 from Rs1,003.4 crore a year earlier. “Access across devices is important. That’s where Office365 is very successful, essentially because it allows user access across devices.
Having said that, there was also a pent up increase because of rise in licence prices. When you combine that with an average 8-10% growth across multiple markets in the country, especially tier-4 and tier-5 towns, this was expected,” said Sanchit Vir Gogia, chief executive, Greyhound Research.The company also said it changed its business model in India last year to include the sale of its retail products.
Set up in 1988, MCIPL marketed Microsoft products in India in return for a service fee, but since April 2013, the company also manufactures, replicates, markets and sells Microsoft software retail products and services in India. “The share of marketing support services has declined from 87% of revenue in the year ended March 2013 to 4% in the current year,” the company said in the filing.
The company’s software retail products include its packaged products, containing software such as Windows on CDs and DVDs, software volume licences and personal computer or XBox games. In July, Microsoft said its fourth-quarter revenue rose 17% to $23.38 billion, helped by sales from its acquisition of Nokia and its core Windows and Office products.
While the company has been aggressively pushing its cloud platform Azure in India, experts feel it is still a long way before it catches up to nimbler rival Amazon Web Services, which has had immense success bringing small and medium enterprises on board in the country. Microsoft also reported a profit after tax of Rs 96.85 crore and said its online search revenue in India grew 235% from last year.
“On a small base, any growth is good,” said Gogia.
Source: Communications Today