Microsoft launch confirms Nairobi is a rising tech hub

Microsoft CEO Satya Nadella (second left) and the firm’s general manager Kenya, Mr Kunle Awosika (right) with Standard Six pupils, Melane Minayo and Jardin Egwa from Westlands Primary School during the launch of Windows 10 in Nairobi. FILE/NATION

What you need to know:

  • It is, however, a matter of conjecture whether the launch of Windows 10 in East Africa will reverse the four-year slide in personal computer (PC) sales that Microsoft has suffered.
  • Mr Nadella’s presence in Kenya during the launch is seen a part of Microsoft’s plan to revive the sales for PCs and perhaps give a boost to the uptake of Nokia handsets.
  • It will enable businesses to control the frequency of their updates and select features and functionality that are in tandem with the needs of each group of their employees.

Microsoft’s choice of Nairobi to unveil its new software, Windows 10, is a rarity given that the company could have settled for big cities in the West.

However, the tech heavyweight’s choice of Nairobi last week is the latest indicator of Kenya’s growing stature as a centre for innovation across the world.

The move is also seen as Microsoft’s broader strategy to lay a firm grip on Kenya, the heart of ICT and mobile innovations in Africa.
“Africa is on the move,” said US President Barack Obama said during the Global Entrepreneurship Summit held in Nairobi on July 25-26.

It is, therefore, no surprise that Microsoft CEO Satya Nadella picked Kenya to launch the software even as he took time to “learn how technology is empowering Kenyan people and organisations”.

It is, however, a matter of conjecture whether the launch of Windows 10 in East Africa will reverse the four-year slide in personal computer (PC) sales that Microsoft has suffered.

Industry researchers and stakeholders, who have been monitoring the PC market trends, note that new versions of Windows have always been followed by increased sales of PCs.

However on account of market predictions by international research companies, the chances that Windows 10 launch will trigger an upswing in PC sales remains slim.

Global market tracker Gartner Inc expects PC sales to be “slow and steady” after the launch of Windows 10 while International Data Corporation (IDC) predicts that PC sales will decline slightly next year. IDC also projects limited growth in the coming years after the markets adopt Windows 10.

FREE OPERATING SYSTEM
“We continue to expect low to mid-single digit declines in personal computer volume during the second half of the year with volume stabilising in future years,” said Loren Loverde, vice-president Worldwide PC Trackers & Forecasting.

He added that many Windows 10 users will opt for a free operating system upgrade rather than buying a new computer.

Microsoft CEO however views Kenya differently. Mr Nadella expects users to purchase PCs running on Windows 10 because of “the thrill that comes with owning it” in a new gadget.

“We want Windows 10 to go from where users need it, to choose it ... to loving it,” Mr Nadella said last week.

Mr Nadella’s presence in Kenya during the launch is seen a part of Microsoft’s plan to revive the sales for PCs and perhaps give a boost to the uptake of Nokia handsets.

BOOST EARNINGS

Last year, Microsoft relied on cloud-computing growth and recovering personal computer sales to boost its global earnings.
The sales of Azure cloud software and Web-based versions of Microsoft Office programs more than doubled. Total revenue in the first fiscal quarter, which ended September 30, rose 25 per cent to $23.2 billion.

The focus is now on emerging markets, with Microsoft planning to win audience from Kenya by positioning East Africa’s largest economy as the centre of mobile communication.

Mr Nadella is eyeing mobile and cloud products to push the software giant’s overall growth a notch higher.

According to Mr Daniel Ives, an analyst at international investment bank, FBR Capital Markets & Co, Mr Nadella seems to have the “firm’s acts all planned out”.

“He is keeping a positive momentum with investors — under-promising and over-delivering,” he said.
Microsoft has been releasing apps for other platforms such as Apple and Android play stores for a while now. Mr Nadella says the move is aimed at ensuring that Microsoft’s value is showing up on all these platforms via the applications.

The company seeks “to empower every individual and organisation on the planet” using its new operating system.
Mr Nadella said the aim is to ensure that Microsoft value is showing up on multiple platforms via these apps.

“Windows 10 is a huge milestone, for us as a company and quite frankly for the industry. It is not just another release of Windows. It’s the beginning of a new era,” Mr Nadella told BBC last week.

LUKEWARM RESPONSE

From the lukewarm response that Windows 8 received after launch, time will tell how the market embraces the latest operating system from Microsoft.
Windows 10 operating system promises users, especially the entrepreneurs, a new and better experience.

It will enable businesses to control the frequency of their updates and select features and functionality that are in tandem with the needs of each group of their employees.

The platform comes with pre-installed intelligent gadgets such as Cortana on the desktop, which Mr Nadella said is as important as the computer’s operating system. Cortana uses personal data to better secure ones devices.

To obtain Windows 10, one has to upgrade existing Windows 7 or 8 versions or buy a new PC with the software installed already.