Testing the Waters of Korea's Software Ocean
Testing the Waters of Korea's Software Ocean
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  • 승인 2006.07.01 12:01
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Software / MS Korea Microsoft launches innovative Korea support plan Following the decision by U.S. software giant Microsoft (MS) to invest US$30 million in Korea's software companies over three years, starting this year, the win-win game between MS and Korea's software companies is grabbing the attention of associated business circles. MS has since its establishment in 1975 been paving the way for the digital information revolution and taking the leadership in software innovation which served as an impetus for the growth of the PC industry. Starting from MS-DOS, the first operating system, MS brought innovation to the industry by supplying diverse software, plus services and solutions including Microsoft office, window and Xbox. About this Korean investment decision by MS, observers among smaller software companies at home and abroad are expressing very positive responses. Courting Korean game companies Including the US$ 30 million, development costs for a mobile innovation laboratory announced by MS in March last year, its investment scale in Korea extended to US$ 60 million in total with this investment as an impetus. CEO Steve Ballmer, who visited Korea at the end of May as part of the Seoul Digital Forum participation, announced the "Innovative Korea Support Plan," at a press conference on the first day of the Seoul Digital Forum. In conjunction with MS' investment background, Ballmer explained: "The world is wide. We are investing all over the world and doing many investments in Korea rather than any other markets in the world. This is because we have a belief in Korea software companies' ecosystem," The main point of the Innovation Korea Support Plan is that MS is establishing the 'Microsoft Innovation Center (MSIC) by adding two laboratories, namely the "ISV Empowerment Laboratory" and the "Web Engineering Laboratory" for the purpose of software product development as well as technology innovation support to the "Mobile Innovation Laboratory" that the company has been pursuing since last year, according to the officials involved in this project at Microsoft Korea. It is said that these two laboratories were forged for the Software Ecosystem Project that MS is advancing jointly with KIPA (Korea IT Industry Promotion Agency). 'Software Ecosystem' is an accompanying growth model of software business circles in which companies holding base technology and independent software companies create profit through technology sharing and partnership and form a pre-cycle ring. The ISV empowerment laboratory is scheduled to offer all sorts of technology support in the interests of competitiveness strengthening by selecting a total of 60 software companies over the coming three years. The five finally selected software companies among them receive all kinds of support for overseas market inroads. Relevant software fields are * home network software, * digital content for next-generation web as well as software solutions, * embedded as well as mobile software, *telematics software, and * RFID/USN-based software which are connected with the U-Korea strategy of the Ministry of Information & Communication (MIC). The Web Engineering Laboratory comes to play a role by lending support in concert with domestic software companies through Web service as well as digital content research. Separately from this, 'Mobile Innovation Laboratory' established last year, MS is developing next-generation wireless technology jointly with domestic companies. Seeking tie-up with 'Live Anywhere' strategy Steve Ballmer of MS and KIPA CEO & president Ko Hyun-Jin signed an MOU, while Minister Rho Jun-hyong, MIC attended the ceremony. Praising this tie-up, Ko said: "As Microsoft's cooperation is added to the efforts in the meanwhile to nurture software power, Korea software industry's global competitiveness is expected to become even stronger". From his side, Steve Ballmer added that he was pleased that with this project as an impetus, MS is able to contribute to Korea's software industry development. In step with the Korean government's determination to nurture the software industry, he said that MS will help software companies boasting of the highest level's technology power globally to be nurtured in abundance. The US$30 million investment plan of MS can be summarized as a part of the company's efforts to identify and to nurture partner companies within Korea. Microsoft Game Studios' GM Shane Kim also who visited Korea to attend 'Seoul Digital Forum 2006' together with Ballmer, was also courting Korean game companies. Kim appealed to ally Korean game companies with 'Live Anywhere' strategy, MS' long-term vision in the Seoul Digital Forum. 'Live Anywhere' is a strategy which allows to be able to enjoy the same game anytime and anywhere through Internet irregardless of terminals such as PC, Xbox and cellular phone. He pointed out: "Korea game developers' development power is excellent and Korea's game development environment which is strong in online game for PC, matches well with MS' Live Anywhere strategy". Shane Kim explained that MS has been developing Xbox game with Korea's Phantagram, Webzen and Softmax etc. and he expected that this business relationship would be developed even further. If MS' new game machine Xbox360 can be geared with Korea's online games which are building into a powerful force, it is expected that MS could gain a favorable position in securing an advantage over its game machine competitor, Sony. Kim went on to mention that MS attaches importance to the Korean market, so the company launched Xbox360 in Korea for the second time in Asia, following Japan. Transformation to online service company Microsoft's success secret lies in its monopoly power. Whenever MS makes its way into new markets such as office or Web browsers, the company seeks to secure a monopoly position within a short period. Continuing to change from one monopoly to another monopoly, MS is assessed to have succeeded in maintaining the leading position. Currently, MS is attempting the company's transformation from a software company for PCs to an online service company, and eventually to a post-PC company. In the case of online service companies, Google is now occupying first place. In post PC field as well, Apple, Nokia and Sony etc. are pitching their camp. In order for MS to maintain the top's position, MS has to win in a battle with them. MS' strategy is to integrate all sorts of Internet services, like search engine and portal services with priority given to Explorer, Internet Windows, etc. Furthermore, it aspires to extend the company's position in the PC market to the post-PC sphere, from the springboard of PCs & post PCs compatibility.

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