China Exclusive: Windows 10's China launch taps local firm clout, brainpower

The latest Windows operating system (OS) launched on Wednesday will cater increasingly to Chinese users as Microsoft seeks to reconnect with consumers in the world's largest PC and mobile device market, the company's executive vice president Harry Shum said in an exclusive interview with Xinhua.

Windows 10 will run across all device types from personal computers (PC) and mobile phones to Internet-of-Things (IoT) devices.

The new operating system will be the last of its kind but will receive constant updates in the future.

"I think the new Windows could look a lot different in China compared to those for other markets as we work to understand and meet the unique needs of Chinese users through several updates going forward," Shum said.

While the Redmond, Washington-based firm extended a limited time offer for free upgrades to the consumer version of Windows 10 from Windows 8 and 7, it has teamed up with a number of Chinese internet firms and hardware makers, including Tencent, Qihoo 360 and Lenovo, to help promote the new OS to Chinese consumers.

Shum said enlisting the help of influential Chinese tech firms is an unique strategy Microsoft has used to promote Windows 10 in China, where more than 30 percent of PCs still runs on Windows XP, the more-than-a-decade-old OS the company has stopped providing support for, compared with 12 percent worldwide, according to data compiled by StatCounter and NetMarketShare.

Meanwhile, Windows 8 and 8.1 have also seen a slower uptake in China than other parts of the worldwide, underscoring the challenge the company faces in persuading Chinese consumers to adopt newer versions.

Yet Microsoft thinks the help from domestic partners will make that push easier.

"These Chinese firms have forged very close relationship with users here. Tencent's QQ boasts 800 million users, Qihoo 360's anti-virus software have been installed on tens of millions of PCs. Windows 10 can leverage their closer ties with users to reach out more consumers," Shum said.

Microsoft previously said it aims to have 1 billion devices running Windows 10 in two to three years but didn't disclose country specific numbers.

China also boasts the world's second largest Windows Insider community after the United States. These insiders, a group of tech-savvy volunteers that sign up with Microsoft, provided feedback on a preview version of Windows 10 prior to its release.

More than 600,000 Chinese insiders, or around 12 percent of the world' s total, have been helping Microsoft to modify the new Windows into Wednesday's final product.

Shum said Chinese participants of the program also advised Microsoft on how to readjust the operating system for the unique needs of Chinese users.

"China's huge user base is generating a lot of demands that are being met by a growing legion of world-class, but home-grown software developers," Shum said. "The participants' contribution to Windows 10 tells us that their work doesn't have to stay just in China, they should be recognized globally."

For the Chinese version of Windows 10, Microsoft has readapted its intelligent personal assistant Cortana with local content. The new OS also comes with a similar service currently only available in China called "XiaoIce", which Microsoft says already has 37 million users in the country. The developers based in Microsoft's Beijing R&D headquarter is also working with engineers in Tokyo to develop a Japanese version.

"Chinese software developers deserve the global spotlight and I think someday the BUILD conference (for developers) should be hosted in China too."

Microsoft has also been trying to cultivate closer relationship with a wide range of partners in China as part of what Shum call the expansion of Windows ecosystem in China.

In March, the company moved its WinHEC conference for hardware makers to the southern Chinese city Shenzhen. According to Shum, the company is also expanding its ecosystem in Beijing to include a growing software developer community.

Microsoft has also been running an incubator in China to nurture promising start-ups and is seeking to become a part of China's grand plan to use the internet to revolutionize industrial manufacturing through cloud computing and IoT.

In such cases, many of Microsoft's partners that help it promote operating systems have become its potential rivals. Domestic internet giants like Tencent, Alibaba and many others are scrambling for a foothold in data analytics and cloud computing.

"We understand we will venture into these business with competition from Chinese firms but with that we also see great businesses opportunities and we certainly don't want to miss out the rise of mobile internet and IoT in China," Shum said. Endi