Lenovo Group and Microsoft ink an expanded global strategic alliance to promote the use of validly licensed Microsoft software products in China and elsewhere.
Senior executives from Lenovo Group Ltd. and Microsoft Corp. met recently to reaffirm their joint efforts for market development and to formally sign a global agreement that expands and deepens the strategic cooperation between the two companies.
The two companies will work together to promote the use and benefits of validly licensed Microsoft software products through new and innovative joint sales, marketing and training programs in China and around the world.
Lenovo Group Ltd. and Microsoft Corp. formally signed a November agreement to pre-install the Windows operating system on Lenovo’s computers made in China.
In November 2005, Lenovo took the initiative to launch a value-added software program in China, becoming the first PC manufacturer to pre-install genuine Microsoft Windows operating systems in all its product lines for the China market, where software piracy is rampant.
Educational programs have also been conducted at all Lenovo stores to increase consumer awareness of the value of genuine software; understanding of software copyright issues; and features such as system security, privacy protection and virus prevention.
Software counterfeiting is a problem in China and other emerging markets, but Lenovo, working at Microsoft’s behest, is trying to convince its customers in China that genuine software is more valuable than counterfeit copies. China recently ordered PC makers in the country to ship PCs with operating systems loaded before those systems are sold to businesses and consumers.
The agreement is expected to result in $1.2 billion in sales worth of Microsoft software during the next 12 months as part of the deal, which also focuses on anti-counterfeiting efforts in China, Lenovo said.
Microsoft supports the program by providing marketing resources and technology assistance. Since its launch, this innovative Lenovo program has surpassed expectations, receiving an enthusiastic response from consumers, resellers and business partners alike. The program is expected to boost intellectual property rights protection efforts in China. Lenovo plans to extend this kind of program to other emerging markets, driving business growth.
Intellectual property concerns are expected to be a frequent topic of discussion during the visit of China’s President Hu Jintao visit to the U.S. this week, which includes a stop for dinner at Microsoft Chairman Bill Gates’ house.
Lenovo chairman Yang Yuanqing said the percentage of customers who chose to buy a Lenovo PC pre-installed with Windows XP rose from 10 percent before November to more than 70 percent now.
"The partnership we sign today will further increase our cooperation in this area, as well as extending our partnership to include high-end PC product development and joint marketing in new emerging markets," Yang said at a ceremony, attended by Microsoft chairman Bill Gates, Microsoft chief executive Steve Ballmer and Chinese government officials.
By taking the lead in providing genuine value-added software on PCs in China, Lenovo is demonstrating foresight and wisdom as a responsible global industry leader, said Bill Gates, chairman and chief software architect of Microsoft. "Microsoft commends Lenovo for recognizing the importance of intellectual property rights and the value of genuine software. We will continue to work with Lenovo and other industry partners to ensure that customers get the greatest value and performance from their PCs."
The formal signing of the November agreement at Microsoft’s headquarters in Redmond, Washington, comes a day before China President Hu Jintao arrives in Seattle and tours the software giant’s headquarters and has dinner at the Gates’ residence.
Our first priority has always been to provide highest-quality, innovative products to our customers, said Yang. "Working together with Microsoft, we have made it easy for our joint customers to get the reliability, service and support only available from genuine software, at great competitive pricing. As a global corporate citizen, we want to lead the efforts to make it possible for ordinary users to enjoy genuine software and to help foster the healthy and orderly development of the IT industry in every country in which we do business."
Lenovo intends to pre-install genuine Microsoft software on PCs manufactured by Lenovo that are sold in more than 65 countries and regions around the world, allowing customers to enjoy the Windows capabilities they expect, and take advantage of ongoing system improvements that let them do more with their PCs.
Lenovo, the world’s third-largest PC manufacturer, last year bought International Business Machines Corp.’s PC assets for $1.25 billion.
Aside from Lenovo, three Chinese PC manufacturers have announced plans to buy a total of over $400 million worth of Windows operating system software.