Rajiv Kaul, managing director, Microsoft India, is working out how to invest the Rs 2,000 crore-booty that Bill Gates has earmarked for India. This is Microsoft’s largest investment outside the US.

Mr Kaul also has to take on Linux and the open source software movement that’s spreading fast across India. He talks about the Microsoft agenda to Pragati Verma and Sanjeev Sharma.

Excerpts related to Linux:..

How do you assess the impact of Linux in India?

Hardly any. Even if you look at IDC figures, our marektshare has not fallen. We have maintained a marketshare of 60% for the last two years on the Windows server. On the desktop, we’ve seen a negligible impact. You would have to struggle to figure out any big Linux customer on the desktop. It has taken years and decades for Windows to make its own space on desktop. It takes a lot of effort and investment from the entire ecosystem. Even if you forget about industry issues — latest versions, standard codes, licensing issues — it’s our ecosystems of partners that count.

On the server side, Linux today is used primarily in two scenarios — high volume but low value like web pages. And second is low volume but high value like scientific applications. We have extended our line of offerings to offer solutions in both these areas. Primary use of Linux is still seen only at academic and research level.

So, Linux has not dented Microsoft’s business in India in any way?

It is a competitive market but we haven’t seen a significant impact till now. Various governments are evaluating technologies but the official policy of the government of India is to be neutral and not play a role in choosing one platform or another. Initially, there was some hype and hoopla over the so-called ‘free’ software, but users are fast realising the total cost of owing a Windows system could be far lower. And there are enough research studies available vouching for that.

When you buy Microsoft, you know what you buy is what you get and there are no hidden costs. In fact, users like central depository system (CDS) and Moser Baer, who had earlier opted for Linux, are moving back to Microsoft. We are already seeing the first stages of discontent among Linux users.