Microsoft Readies Another Cut-Rate Windows Bundle

Right after dropping hints that it is readying new initiatives to combat the growth and popularity of open-source software overseas, Microsoft acknowledged Tuesday that it is offering a low-priced Windows bundle to Malaysian users.

A company spokesman said Microsoft had just announced an agreement with Malaysia to offer a localized bundle of XP Home and the Microsoft Works suite for low-cost PCs. The deal falls under the auspices of the Malaysian government's PC Gemilang Project. Malaysian citizens can place their orders between March and April through 200 retailers around the country, the spokesman added.

"The PC Gemilang program is another example of innovative programs that Microsoft is creating in emerging countries to develop, enhance and expand local skills that enable individuals to realize the benefits of a robust, global IT industry," according to a statement by Microsoft.

"We are committed to continuing to work with governments all over the world on programs and initiatives that address their specific challenges and meet the needs of their citizens," the statement continued.

The Malaysian deal is very similar to one that Microsoft struck with the Thai government last summer. In response to the success that Linux was having in the Thai marketplace, Microsoft began offering Thai citizens a bundle of Microsoft Windows XP Home and Office XP Standard. Under the auspices of the Thai government's "People PC" project, Microsoft provided a Thai-localized version of its operating system and desktop suite.

As part of the Malaysian Gemilang program, like Thailand's People PC project, the government offers consumers a choice of a Linux bundle or a Windows bundle.

Microsoft is working on a number of new initiatives that it plans to launch over the next few months that will help Windows to compete on a more level playing field with open source, according to Martin Taylor, Microsoft's general manager for platform strategy and the company's main point man on Linux. Taylor said as much during a Web cast for financial analysts, shareholders and other interested parties on Friday morning. Taylor declined to offer specifics.