Microsoft goes vocal for local for big tech

Microsoft chairman Satya Nadella’s statement in an interview to ET that ‘our licence to operate in any country fundamentally exists because we create local surplus’ is an admission of interdependence by the maker of platforms on which enterprises across the world are parking chunks of business. It is in Microsoft’s interest to seek deeper engagement with local businesses to push cloud solutions, which it has done in India through its biggest play in development centres outside the US. The company is building products for the world in India. Nadella also makes the point about the rate of technology diffusion and India having the human capital to accelerate it. All of this is good for business for a company that derives close to half its revenue from Office, its productivity software, and its cloud platform Azure.

Its focus on producers allows Microsoft to fly lower than its competitors like Google, Amazon, Meta and Apple, which are facing increasing scrutiny over consumer rights. In the consumer space, Microsoft is being sued by the US Federal Trade Commission over its purchase of video game publisher Activision. Nadella’s position on regulation lays the onus on technology companies as much on lawmakers in what is essentially a game of catch-up. In the case of India, its regulatory structure should cater to its position as a technology exporter by allowing for entry and exit of data.

Both the intensity of absorption and the capacity to exploit artificial intelligence (AI) render India a special role in the evolution of technology. This is of particular importance given the ‘deflationary importance of technological advancements’, as Nadella puts it, in a global system realigning to new geopolitical realities. India’s adoption of technology being developed by Microsoft to make growth more inclusive can serve as an example for the world. Big Tech is turning towards India as a showcase for technology-assisted social development.