Microsoft’s North Africa Opportunity and Challenge

With shrinking computer sales, the engine of Microsoft (MS) revenue with operating system sales, every penny counts no matter where it comes from. Software giant Microsoft is expanded its focus on the North Africa region seeking to up its revenue from that emerging market. But although the Maghreb is a region full of opportunities, in particular as Microsoft begins to push for its latest operating system Windows 7, the company is facing a set of challenges, from convincing North Africans to upgrade, to actually making a dent on piracy, and competing against open source software.
In Algeria for example, the banking sector still uses outdated technologies, making a refresh cycle potentially appealing but very difficult to achieve given the technical complexity the transition would require. As a result, potential buyers continue to hold onto what they have, inhibiting sales of software, applications and even hardware.
The company dispatched senior executives in late 2008 to share Microsoft displeasure at the pace in which technology introduction is moving. Regional Manager Seddik Sherif noted that Algeria’s economic prosperity in the future will be linked to the modernization and performance of its banking sector…read more

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