Imagine the struggle a large technology company faces in India. You want to cater to the millions of mom and pop stores in the country, but they are happy offline. As companies scramble for ways to bridge the gap, Microsoft may have found something – to get people onto the information highway, it’s hitting the highway itself.
A more focused Microsoft
In the past, Microsoft focused on converting businesses who used counterfeit products into its customers, says Sanchit Vir Gogia, Chief Analyst, Founder and CEO of Greyhound Research.
“Microsoft is moving from compliance selling to service selling,” Gogia says. “They would find businesses that were running counterfeit Microsoft products and say that there will be an audit. That strategy brought in a ton business to the company. But that sort of strategy won’t work forever.”
“Microsoft stands to earn more if its resources are consumed more,” Gogia continues. “It’s a consumption model now. The customers need to see value in your service and continue to stick with you. That’s where Microsoft is going now.”
But Microsoft is fighting one more battle.
“The company’s products and services are often perceived as expensive,” Greyhound’s Gogia says, adding that people also think that Microsoft is a company that only serves large enterprises, and not “mom and pop stores.”
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Analyst:
Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global Technology & Innovation Research, Advisory & Consulting Firm. To read more about him, click here.
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