Microsoft Unlimited Potential Enabling Sustained Social and Economic Opportunity for the Next Five Billion People Legal Disclaimer
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Microsoft Unlimited Potential Enabling Sustained Social and Economic Opportunity for the Next Five Billion People Legal Disclaimer The information contained in this document represents the current view of Microsoft Corporation on the issues discussed as of the date of publication. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft and Microsoft cannot guarantee the accuracy of any information presented after the date of publication. This whitepaper is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT. Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of Microsoft Corporation. Microsoft may have patents, patent applications, trademarks, copyrights, or other Intellectual property rights covering subject matter in this document. Except as expressly provided in any written license agreement from Microsoft, the furnishing of this document does not give you any license to these patents, trademarks, copyrights, or other Intellectual property. © 2008 Microsoft Corporation. All rights reserved. Microsoft, FlexGo, SteadyState, MultiPoint, Unlimited Potential, Windows, and Windows Live are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners. 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 basic 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 basics 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