Microsoft Partners with SME Corp To Transform Malaysian SMEs With Cloud Computing Technology

Microsoft could reinvest up to RM20.8 million through SME Corp for the first year, for SMEs to compete and succeed in the future with Office 365

Kuala Lumpur – December 5, 2011 – Microsoft Malaysia (“Microsoft”) and SME Corporation Malaysia (“SME Corp”) announced a landmark partnership agreement to transform Malaysian small and medium enterprises (“SME”) with cloud computing technology through its Office 365 productivity suite. Microsoft is to reinvest US$13 per Office 365 seat, which could see an expected investment by Microsoft of up to RM20.8 million (US$6.5 million; US$1=RM3.20) for the first year alone, if it is adopted by 50,000 SMEs in the country.

The partnership, announced at the Make “IT” Work For Your Business event held at SME Corp’s headquarters this morning, was hailed as a significant achievement and an excellent example of a private-public partnership that moves forward the agenda towards achieving the government’s SME Masterplan. The objective of the partnership is to empower Malaysian SMEs with the tools they need to succeed in global, interconnected business landscape where agile and scalable technology infrastructures is key to maintaining the competitive edge.

“If Malaysian SMEs are to succeed in growing to contribute 41% of GDP by 2020, then it is essential that they use ICT to raise efficiencies and innovate the ways in which they work,” Y. Bhg. Dato’ Hafsah Hashim, CEO, SME Corp. “SME Corp and Microsoft are together actively reaching out to Malaysian SMEs to help them adopt and use one of the world’s best cloud solutions to drive both creativity and productivity in their businesses.”

“The opportunity for transforming the way Malaysia does business is enormous. 99.2% of businesses in Malaysia are SMEs, which presently employs 56% of the Malaysian workforce and generates 32% of the national GDP. In fact, SMEs in Malaysia will benefit from using Office 365, and I encourage everyone to visit our website and find out for themselves how SME Corp. Malaysia and Microsoft can help you transform their business,” Y. Bhg Dato’ Hafsah said.

Dato’ Hafsah continued, “In fact, it is our intention to start by reaching at least 50,000 SMEs in Malaysia to leverage the power of cloud computing through Office 365 for the first year. I am also very pleased to note that Microsoft has committed to reinvesting up to RM20.8 million in the first year alone to help these SMEs transform their businesses through Office 365.”

According to Ananth Lazarus, Managing Director, Microsoft Malaysia, “Microsoft, as a world leader in cloud solutions for SMEs, is committed to helping Malaysian SMEs unlock the power of the cloud and transform their businesses. This is a commitment that we have built into our national plan at Microsoft Malaysia to support the country’s aspirations and realize transformation together; whether it is for individuals, businesses or education. It is a commitment that is certainly also in line with YAB Prime Minister Datuk Seri Najib Abdul Razak’s administration’s commitment to bring SMEs to the fore as a major contributor to Malaysia’s GDP.”

Prime Minister Datuk Seri Najib Tun Razak had recently declared that SME development was vital because 99 percent of businesses in the country were contributed by the sector and that positive, bold steps were needed to ensure the sector continue to grow in tandem with developed countries.

Ananth continued, “So, when we first launched Office 365 in July this year, we announced that we would work immediately embark on concrete steps to collaborate with a government agency such as SME Corp to transform businesses with cloud computing technology and to ensure that such an initiative became a reality as quickly as possible. It is indeed a pleasure to announce that less than 6 months later, we have a strong and concrete program together with SME Corp to empower Malaysian SMEs and give them the tools they need to advance the skills of their workforce, connect with partners and customers and communicate across their business network.”

The partnership will allow Malaysian SMEs to realise business and competitive advantage through using Microsoft Office 365 to create, edit, store and share their ideas and work in the cloud. Using Office 365 also gives an additional benefit to Malaysian SMEs by raising their SCORE (“SME Competitiveness Rating for Enhancement”) rating through improved Management Capabilities and Technical Capabilities – two of the seven petals used to evaluate their businesses. A better SCORE rating allows these SMEs to participate in further exclusive programs and activities organised by SME Corp as well as other government agencies.

The Office 365 Package offered to SMB Corp’s clients combines the power of Office Web apps with enterprise-grade e-mail, shared documents, instant messaging, video and web conferencing (Exchange Online, SharePoint Online, and Lync Online) in an always-up-to-date cloud service that is backed by Microsoft, for only USD6 (~RM19) per user per month. “As a matter of fact, for less than the price of a teh tarik a day, Office 365 allows SMEs to do what they do best – which is to drive and manage their business, while leaving their IT infrastructure management to our expertise,” explained Ananth.

On top of that, Microsoft will also work with SME Corp to conduct various training programmes as well as provide an SME Helpdesk at SME Corp’s headquarters to assist SMEs in using Office 365. Microsoft is further providing the first 200 SMEs that sign up for Office 365 through SME Corp with a Quick Start Activation Package to help them apply and benefit from the technology as quickly as possible.

“There is no better time than now for Malaysian SMEs to transform the way they do business! The confluence of increasing high speed broadband penetration in Malaysia; the support and encouragement of the Government; as well as the ready availability of simple, convenient and cost-effective solutions like Office 365; have all brought about an opportune time for SMEs to get on board with cloud computing technology,” declared Ananth.

“With Office 365, businesses of all sizes get the best productivity and collaboration solutions on the planet for a predictable monthly cost, and their employees get new ways to work together with ease, on virtually any device, and they can still use familiar application suites, like Microsoft Office, which they already know and love,” concluded Ananth.

At the same event, Microsoft also announced a training partnership with Peniagawati (“Association of Bumiputera Women Entrepreneurs and Professionals of Malaysia”), which was among the groups that participated in the Make “IT” Work for Your Business event. Microsoft will work with Peniagawati to drive the development of ICT and cloud computing skills and knowledge to entrepreneurs through training in Office 365.

“If our partnership with SME Corp can be understood as our commitment to empowering SMEs with cutting-edge cloud computing technology, this grant takes our commitment one step further by empowering the SME workforce with the knowledge on how best to leverage such technology,” explained Ananth.