Feeds

Lenovo pays Microsoft $1.3bn for software

The more the merrier

High performance access to file storage

Lenovo will pay up to $1.3bn over the next year to pre-install Microsoft software on its computers. Of course, it is not really doing the paying: it is a Microsoft OEM and so is reselling passing the costs on, along with a little margin for itself, to its customers. So the more it pays Microsoft, the more it is making in PC sales and Office apps sell-throughs.

As China's biggest computer maker, Lenovo will occupy a special place in Microsoft's heart. This is a vast market, where most people pirate software. Lenovo is doing its bit to combat piracy in its home country. It says it was the first PC maker to pre-install Windows on all its PCs for the China market, making the move in November 2005. Selling PCs with pre-installed OSes is now a legal requirement in China, so It also waves the 'buy software' flag through marketing programs conducted in its retail stores in China.

The framework agreement with Microsoft, announced yesterday in San Francisco, was included in a group of commitments from Chinese bigwigs to buy at least $4.3bn in US technology. In a release announcing the deal, Lenovo did not say how much it is paying, but a spokesman mentioned the $1.3bn price tag to Reuters.

It seems unlikely to us that this amount is solely for Lenovo's Microsoft sales in China, but we are happy to be corrected, if wrong. ®

Combat fraud and increase customer satisfaction

More from The Register

next story
WTF happened to Pac-Man?
In his thirties and still afraid of ghosts
Reg man builds smart home rig, gains SUPREME CONTROL of DOMAIN – Pics
LightwaveRF and Arduino: Bright ideas for dim DIYers
Leaked pics show EMBIGGENED iPhone 6 screen
Fat-fingered fanbois rejoice over Chinternet snaps
Rounded corners? Pah! Amazon's '3D phone has eye-tracking tech'
Now THAT'S what we call a proper new feature
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
US mobile firms cave on kill switch, agree to install anti-theft code
Slow and kludgy rollout will protect corporate profits
Happy 25th birthday, Game Boy!
Monochrome handset ushered in modern mobile gaming era
Leaked photos may indicate slimmer next-generation iPad
Will iPad Air evolve into iPad Helium?
True optical zoom coming to HTC smartphone cameras
Time to ditch that heavy DSLR? Maybe in a year, year and a half
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.