Microsoft Unlimited Potential Enabling Sustained Social and Economic Opportunity for the Next Five Billion People Legal Disclaimer

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www.microsoft.com/unlimitedpotential Microsoft Unlimited Potential Introduction development puzzle and facilitate healthy, sustainable growth. The key to realizing this Economists and policymakers agree that potential is to apply it strategically and thoughtfully, investments in technology are crucial to economic in a way that suits each country’s unique needs. growth and development. This view is supported by extensive research that clearly demonstrates Building on decades of business experience, the impact of such investments in areas such as research and development, corporate citizenship efforts and an ecosystem of more than 750,000 Microsoft Unlimited partners around the world, Microsoft continues Potential brings to strengthen its commitment to enabling social together the company’s and economic empowerment. For example, the business strategy and company recently committed to bringing the citizenship goals in a benefits of technology to a quarter billion people coordinated effort to by the end of this decade. Through technology help address the diverse skills training, software and hardware donations, social and economic and a variety of programs aimed at increasing issues faced by those community access to technology, Microsoft is on business productivity, competitiveness and job who currently receive track to meet this goal well ahead of schedule. creation—and by the millions of people who have little or no benefit benefited from technology’s transformative power. from technology. Microsoft began with a mission to put a computer Yet, the vast majority of the world’s population— on every desk and in every home. Now, through some 5 billion people—still lack access to Microsoft® Unlimited Potential™, the company is technology or the opportunities it offers. further expanding its vision by weaving together new business models, technology solutions and No two parts of the world are alike—and, as many advanced research to help solve critical pieces of nations and institutions have learned, technology the economic development puzzle. This broad is not a “magic bullet” for economic development. range of offerings—built on partnerships with Nor is any single company able to deliver on businesses, governments and developmental the complete range of factors that must be organizations—extends the company’s previous addressed—from physical infrastructure to goals for expanding the reach of technology. It market openness and efficiency. If any one of these aims to bring the benefits of relevant, accessible falls short, economic growth can stop as quickly as and affordable software to 5 billion more people, it started. with an initial milestone of reaching the next 1 billion by 2015. Nonetheless, technology in all its forms has tremendous potential to connect communities, Microsoft Unlimited Potential brings together address crucial pieces of the global economic the company’s business strategy and citizenship

1 www.microsoft.com/unlimitedpotential goals in a coordinated effort to help address the and diverse challenges require sophisticated diverse social and economic issues faced by those approaches to development that are tailored to who currently receive little or no benefit from each nation’s unique needs. technology. It aims to catalyze communities in a meaningful and relevant way in order to help Technology can play a key role in promoting create an environment that allows people to make progress in each of these critical areas. It can enable the most of their skills and abilities. And it can government institutions and services to become empower people to become innovators, to create more efficient and transparent. It can help promote new businesses, and to teach and inspire others— productivity, market efficiency and more effective in short, to realize their full potential. business practices. Widespread deployment of computers, software and telecommunications can The Economic Growth Puzzle help increase efficiency and reduce transaction The barriers to growth costs across all segments of the economy. When ranking the economic strength of are often not what Computers, mobile devices and software can vastly nations, the World Economic Forum’s Global they seem, and they improve the quality and efficiency of healthcare, Competitiveness Index considers nine factors vary significantly from and they can help improve and increase the that are critical to promoting productivity country to country. availability of quality education at every level. and supporting national competitiveness. First are the basic requirements: functioning, Evolving the IT Business Model credible institutions; healthy macroeconomic conditions; adequate infrastructure (from roads Today, most of the IT sector’s revenue comes to telecommunications); and health and primary from businesses, consumers and governments education systems. Once these are in in the developed world. Most consumers and place, growth is increasingly driven by factors businesses pay the full price up front for PCs and that enhance productivity: secondary and higher packaged software. Software and online services education, market efficiency and technological are largely designed for use by individuals on PCs readiness, and a regulatory and business climate and devices that they use exclusively. Products that promotes growth and encourages new ideas. are generally priced to appeal to consumers with significant disposable income or businesses with Measured by these factors, many emerging sufficient resources to make large and continuing countries still face significant challenges in investments in technology. achieving substantial and sustainable economic development. The barriers to growth are often not This business model works well for a relatively what they seem, and they vary significantly from thin slice of customers—the approximately 1 country to country. For example, despite India’s billion people living near the top of the economic impressive recent growth, its economy ranks 43rd “pyramid.” Yet, there are billions of other people in competitiveness among the world’s nations— living in underserved communities throughout held back by challenges in infrastructure and the world—in both developing and developed primary education. Similarly, Russia ranks below countries. Microsoft’s founding vision of “a its economic peers in primary education, while computer on every desk and in every home” is China and Mexico fall behind in higher education, a reality for the nearly 1 billion people who use despite high rankings in other areas. Similar PCs today, but what about the majority of the patterns emerge in other countries. These complex world’s population who haven’t yet benefited

2 www.microsoft.com/unlimitedpotential from information technology—or, for that matter, lives, such as improving children’s educational Microsoft’s founding electricity and other conveniences of opportunities, offering skill-building solutions vision of “a computer modern society? for adults and enhancing communication with on every desk and in friends and family. every home” is a reality To better reach those underserved by technology, • Access. Ensuring that every individual has their for the nearly 1 billion the IT industry must dramatically revise its own computer is just one of the many effective people who use PCs assumptions about what customers need, and ways to bring the benefits of technology to all. today, but what about business models must evolve to better address Shared access through Internet cafés, libraries, the majority of the specific challenges. For example, the industry schools and community centers is already world’s population who can build on technologies and business models common in many areas. By helping to make it haven’t yet benefited that are in widespread global use, such as mobile easier for students, families and communities to from information phones. Approaches to licensing should in some use technology together, the IT industry can help technology—or, for that instances evolve from the “pay up front” model lower costs to users and provide additional value matter, electricity and to more flexible (and commonplace) subscription from shared computing resources. other conveniences of or installment plans that are better suited to • Affordability. The IT industry must work harder modern society? individuals and businesses with little up-front to reduce the cost of technology and develop capital or less predictable income. The increased flexible, sustainable business models that make use of advertising-supported software can lower technology available and affordable to all. costs for individuals and small businesses, while also This includes lowering the cost of hardware by creating new opportunities to reach customers in developing new, inexpensive devices, as well as local markets. The industry should also embrace the by making use of the tens of millions of donated concept of shared access: software and solutions and refurbished PCs that become available each that enable students, families and communities year. It also includes addressing the needs of to share costly or limited technology resources. people who have little disposable income And the industry should focus more on how its or access to credit by offering flexible contributions can help people achieve substantial payment methods such as installment and sustainable economic advancement. plans, pay-as-you-go cards and subscription-based services. Microsoft’s approach to these challenges is based on three fundamental principles: Reaching underserved populations requires a sustained commitment to communities and • Relevance. Technologies and services that partnerships. The IT industry’s role should be not work well in the developed world might not be only about delivering technology solutions but appropriate elsewhere. The IT industry must also about catalyzing communities to develop strive to offer software and services that are in new ways to achieve sustainable development. local languages and dialects and are adapted to This means participating in ongoing dialogue with the local culture. This includes software interfaces people in these communities and tapping into the that use graphics and sounds rather than text, knowledge and unique capabilities of governments to better serve the needs of young children and and NGOs that have a deep understanding of local populations with low literacy rates. Technology needs and practices. solutions must truly address the social and economic needs that are central to people’s

3 www.microsoft.com/unlimitedpotential Microsoft Unlimited Potential: improve the efficiency of education systems, enable Education is the Empowering the Next Five Billion student-centered learning, create more powerful cornerstone of software tools and nurture strong learning Through a combination of advanced technologies economic opportunity, communities at all levels. The company is delivering and strong partnerships with governments, so any efforts to help on this vision with a comprehensive offering of partners, NGOs, educators and academics, young people realize customizable education solutions, targeted where Microsoft Unlimited Potential takes an innovative their full potential must the need is greatest. begin there. approach to helping enable new avenues of social and economic empowerment for the majority • Partners in Learning. The Partners in Learning of the world’s population. Built on the principles program broadens access to technology and of relevance, access and affordability, Unlimited helps educators transform teaching and learning Potential focuses on delivering solutions in three through a range of specially developed tools and interrelated areas that are foundational drivers of curricula, teacher training programs and low-cost economic opportunity: transforming education, software. The program is active in 101 countries fostering local innovation, and enabling jobs and and has already reached over 4 million teachers opportunities. In this way, Microsoft can have the and more than 90 million students. Microsoft greatest possible impact in creating a virtuous cycle has renewed its commitment to Partners in of sustained social and economic development. Learning—committing in January 2008 to increasing the company’s investment to nearly Sustained Social & Economic Opportunities $500 million (U.S.) over 10 years. • Microsoft Student Innovation Suite. Through Partners in Learning, Microsoft offers this affordable software package to governments that purchase ®–based PCs for primary and secondary students to use at home and for schoolwork. The suite includes Windows XP Starter Edition, Home and Student 2007, Microsoft Math 3.0, Learning Essentials 2.0 for Microsoft Office and Windows Live™ mail desktop. Microsoft offers this suite for US$3 to qualifying governments that Transforming Education purchase and supply PCs directly to students. • Advanced tools for teaching and learning. Education is the cornerstone of economic Microsoft’s investments in education include opportunity, so any efforts to help young new tools and services that help enable high- people realize their full potential must begin quality, motivating learning experiences. These there. Yet, increased demand for secondary and efforts include Microsoft Math, a set of tools higher education around the world has strained and tutorials to help students visualize and solve infrastructures and created significant shortages of math and science problems; Digital StudyHall, qualified teachers. To help address this challenge, which distributes DVD courses created by skilled Microsoft is working with partners, educators, educators to teachers in rural or low-income governments and NGOs to broaden access and areas; and a new set of education authoring tools

4 www.microsoft.com/unlimitedpotential that enable publishers to create and assemble Windows, Office and other familiar, widely-used vibrant local learning content that can be software and take advantage of the broad range adapted to individual learning needs. of specialized education software available for • Expanding access to limited technology the Windows platform. Microsoft is also making resources. Many communities need to find significant contributions to Intel’s Teach to the ways to make the most of limited computing Future initiative, which helps to improve global resources. One example of maximizing shared teaching and learning through the integration of resources is Windows MultiPoint™, a project technology in education via innovative teacher developed by India that training programs. enables up to 50 students to use a single PC Fostering Local Innovation simultaneously by using multiple mice or other peripherals with color-coded cursors. Initial Once a community has a strong education system, research has shown that children are comfortable it can develop a better-prepared workforce, and engaged when sharing a PC in this way. The further laying the groundwork for economic project is currently undergoing a pilot program growth. Opening the world of computing to other in partnership with Thailand’s Ministry of languages and cultures and enabling creative Education. Microsoft has also released a software technology solutions that meet unique local needs development kit to enable new applications can lead to new opportunities for underserved and curricula using MultiPoint. This kit also was communities around the world. Microsoft aims used in the Microsoft 2007 Imagine Cup, where to foster local innovation through knowledge student developers from around the world transfer—empowering individuals and businesses competed to develop innovative new with technology skills and supporting a healthy local software ecosystem—as well as by providing tools and technologies that broaden access to One example of technology, build local skills capacity and enable maximizing shared new businesses. resources is Windows MultiPoint™, a project • Supporting local software economies. developed by Microsoft Microsoft Innovation Centers support the Research India that growth of healthy local software ecosystems by enables up to 50 helping customers and partners plan, research students to use a single and develop new products and services. In 60 PC simultaneously by education applications. countries worldwide, Innovation Centers in 100 using multiple mice or communities offer students, developers and • Low-cost laptops for education. Microsoft other peripherals with IT professionals access to world-class facilities, is working with a variety of companies and color-coded cursors. consultants and resources. The centers focus organizations to lower the cost of hardware on developing skills and intellectual capital; and software for education. For example, supporting industry, academic and government the company is partnering with Intel on the partnerships; and offering hands-on technology Classmate PC, an affordable new laptop experience. They also help to connect a computer designed for primary-school children worldwide network of software developers across in underserved communities. These highly the full spectrum of development approaches capable machines are equipped with Microsoft

5 www.microsoft.com/unlimitedpotential and business models, combining diverse • Mobile phones. It is not always practical to own locally-driven innovation with opportunities for a PC in areas with unreliable electrical power or shared learning. Microsoft plans to extend its high crime rates. By comparison mobile phones investment in these centers over the next two are relatively inexpensive to acquire, highly years and anticipates opening 200 centers in an portable and easy to recharge, and they take additional 25 countries by 2009. advantage of a reliable network infrastructure • Starter editions of Windows. Designed for first- that is already in place in most countries. Mobile time PC users in developing countries, Starter phones are one of the simplest entry points editions of Windows are now the fastest-growing to computing for underserved communities, editions of the , providing users and future developments can build on their who are new to computing with an affordable strengths to create further opportunities. For operating system and a set of essential features. example, Microsoft Research India has developed They include localized and customized support, technology that enables a PC to function as step-by-step guidance and interactive video an SMS (Short Message Service) server, so demonstrations that help users perform essential individuals can perform basic computing tasks computing tasks. Starter edition by exchanging text messages with a centrally is available in 72 languages in 140 countries. located PC. In the Indian village of Warana, for The company is also working to make Windows instance, this technology powers a service that available on other low-cost hardware platforms enables farmers in a local sugarcane cooperative through partnerships with Intel and other to manage their accounts, check prices and companies and organizations. schedule harvests via their mobile phones. As a result, tasks that once took days to accomplish in Localization. People • Localization. People benefit more from person can now be done remotely in minutes. benefit more from technology when it works in their own language. technology when it Lowering this barrier to usage can greatly • Rural computing. Many of the greatest works in their own improve productivity and help enhance teaching opportunities for technology to spark growth language. Lowering and learning. It can also help nurture new and development lie in rural areas. But these this barrier to usage businesses—in technology and many other areas are also among the most difficult to serve can greatly improve fields. For more than two decades, Microsoft because they are often economically challenged productivity and help has worked with local communities to make and lack adequate electrical power and enhance teaching software and services accessible and available telecommunications infrastructure. Many of the and learning. to the broadest possible audience, via standard programs and solutions described in this paper localization of its products into widely spoken are uniquely suited to serving rural markets, and languages, an IT skills training curriculum Microsoft is embarking on further efforts to help available in 21 languages and Language Interface these communities increase productivity and Packs that help local developers more easily do business in global markets. In China’s Henan extend the reach of computing to less common Province, for example, Microsoft has contributed languages. Today, Microsoft’s products, services two Infowagons—high-tech buses loaded with and training cater to speakers of more than 100 more than a dozen PCs that can travel to rural languages, ranging from Quechua-speaking areas and offer training that introduces people to Native Americans in South America to Nynorsk- the benefits of information and communications speaking Norwegians and Gaelic-speaking technology (ICT). communities in Ireland.

6 www.microsoft.com/unlimitedpotential Enabling Jobs and Opportunities 37,000 community technology centers in 102 countries have been supported through grants A strong technology infrastructure makes of cash and software, a specialized curriculum communities more appealing to local, regional available in 21 languages, and support for and global businesses and investors, which in telecentre.org, an organization that connects, turn helps bolster economic growth and global supports and invests in these centers. competitiveness as well as stimulate jobs and personal achievement. Through technology • Alternative business models for technology access programs and support for local software access. Until recently, many customers in economies, Microsoft is committed to helping underserved communities have not been able to increase growth and economic development acquire their own PC, due to a lack of available through effective use of technology as well as consumer credit or unpredictable incomes. supporting local hardware, software and Microsoft FlexGo™ is one example of the service companies. company’s efforts to explore innovative business models that enable middle-income customers to acquire PCs using affordable subscription or

Through technology pay-as-you-go methods. access programs • Donated and refurbished PCs. As companies and support for local invest in new technologies, they are creating software economies, a vast pool of older but still usable PCs that Microsoft is committed can be redeployed to serve communities in to helping increase the developing world. The technology analyst growth and economic firm Gartner estimates that two-thirds of used development through PCs are discarded or stored. The Microsoft effective use of Authorized Refurbisher (MAR) program and technology as well • Partnerships for Technology Access. the company’s Digital Pipeline initiatives as supporting local Implemented in collaboration with local (currently being piloted in Europe and Africa) hardware, software and governments and NGOs, this program delivers help organizations put their used computers to service companies. affordable PCs to small businesses and work in underserved communities around the underserved communities through innovative world while also reducing the environmental financing programs. In Egypt, it is helping many impact of discarded equipment and mitigating of the working poor to acquire PCs through the cost and regulatory burdens of recycling old low monthly payments and to improve their computers. As part of Microsoft’s Partners in skills and get better jobs. In Nigeria, it is helping Learning initiative, the Fresh Start for Donated government workers pay for new computers Computers program is helping to ensure that using their paychecks as collateral. computers given to schools and community • Community Technology Skills Program. centers stay secure and up-to-date with genuine Unlimited Potential greatly expands on Microsoft software. Additionally, through a Microsoft’s previous efforts to broaden digital partnership with the United Nations Industrial inclusion and support workforce development Development Organization (UNIDO), Microsoft by helping to provide technology skills through is distributing refurbished computers to promote community technology centers. More than the development of small and medium-sized businesses in Africa.

7 www.microsoft.com/unlimitedpotential • Shared access. Through the publication of Conclusion Making the Connections: Scaling Telecentres for Helping more of the world’s people to seize new Development, Microsoft and telecentre.org are opportunities and realize their potential requires helping provide frameworks and best practices only two raw materials: intellect and imagination. to guide sustainable approaches to developing Technology is a powerful amplifier for these factors, shared computing facilities. This partnership has and although it is only one piece of the solution also built the Telecentre Knowledge Network to the economic growth puzzle, it supports nearly community Web site to serve as a forum for every aspect of development and is a critical sharing findings and best practices on the reach investment for any country seeking to promote and benefits of ICT worldwide. growth and create new opportunities.

The technology analyst Microsoft Unlimited Potential aligns the company’s firm Gartner estimates technologies, partnerships, business and corporate that two-thirds of used citizenship efforts in a concerted effort to bring PCs are discarded or the benefits of information technology to people stored. The Microsoft who are under-served today—and to help enable Authorized Refurbisher sustained social and economic opportunities (MAR) program and for communities around the world. Through the company’s Digital a comprehensive and complementary range Pipeline initiatives of technologies and programs built on strong (currently being piloted partnerships with governments, businesses and in Europe and Africa) • Windows SteadyState™. Although community local communities, Unlimited Potential will help help organizations put centers, libraries and Internet cafés are popular people from all walks of life to participate fully their used computers venues for computing access in the developing in the benefits and opportunities of the global to work in underserved world, operators often struggle to keep systems knowledge economy. communities around updated to ensure security, privacy and the world while reliability—as well as to address community To learn more about Microsoft Unlimited Potential, also reducing the concerns such as access to violent games and please visit www.microsoft.com/unlimitedpotential. environmental impact pornography. Windows SteadyState is a free of discarded equipment download that hundreds of thousands of and mitigating the cost community centers, schools, libraries and Internet and regulatory burdens café operators are using to prevent unauthorized of recycling access and changes to system settings and to old computers. offer a consistent, familiar and private experience for users. In India, the toolkit is helping rural villages build PC-based kiosks to connect residents with education, health and government services. In other countries, including Turkey and Ukraine, it is helping Internet café operators to improve reliability, safety and security.

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