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Gates woos techies, dismisses Linux threat

Microsoft Corp chairman Bill Gates coaxed Indian engineers on Wednesday to use his firm's proprietary software, as he dismissed threats to his Windows system from rival Linux in the battle over network computing.

The world's richest man, on the third day of his trip to India, didn't bring any gifts, but instead delivered a sales pitch in the nation's technology capital. More than 1,000 software companies are based in Bangalore.

Gates, who said on Tuesday that his firm would invest $400 million in India over three years on education, partnerships and boosting its own software centre, used his Bangalore visit to promote Microsoft's .NET (dot-net) network platforms and tools.

The sale of these tools is key for Microsoft in Web services, which involves connecting different computer systems and mobile devices. The .NET tools rival Sun Microsystems' SunONE tools to speed up end-use software.

"Trustworthy computing is the biggest focus of our current $5.0-billion-a-year R&D budget. I think we will really surprise the world," Gates told more than 2,500 software writers in an open-air theatre at the sprawling campus of Infosys Technologies Ltd.

Microsoft officials say India is "strategic" for the giant, a reference to its role in making software based on its tools.

While .NET tools help connect network computers, Windows-based software that runs in them faces a challenge from Linux.

Microsoft's Windows has dominated desktop computing for years, but modifiable Linux has been making inroads into the market for servers, the machines that manage computer networks.

Analysts say Microsoft could get hit if "open-source" Linux turns popular with cost-efficient Indian developers. Indian officials say they will grow to 1.3 million from 400,000 now in four years, making them the world's biggest software army.

But Gates dismissed fears of Windows being hit by Linux, saying Linux, not owned by any company, could raise costs from maintenance that requires more support workers.

"There has always been free software going back 20 years but the success of the Windows platform has come from the overall richness of the platform," Gates told reporters.

"Software by being comprehensive can save money by avoiding having to buy other add-on pieces of software. You can save money in terms of speed of development (and) less expensive hardware."

Prasanto Kumar Roy, group editor of Dataquest magazine, which is unrelated to the US-based group of the same name, told Reuters only two to three per cent of developers in Indian firms now focused on Linux but freelancers would take the share to six to seven per cent.

"That could be significant," he said, adding that tight budgets in mid-sized firms and the government could hit Windows.

"What is true is that all these guys have limited budgets and Linux can stretch the budget. New PCs available today for Rs 10,000 are running on Linux," Roy said.

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