FIVE flavours of Microsoft's latest Windows Vista operating system (OS) are now available to consumers around the world, but a lesser-known sixth version is also making its way around in selected Asian countries. With this product, the software behemoth is hoping to cash in on an untapped market opportunity while fulfilling the social cause of narrowing the divide between technology haves and have-nots.

Called Windows Vista Starter, the OS has been launched in places like Indonesia, the Philippines, Thailand, Malaysia, Vietnam, India and Bangladesh. This product is tailored for developing countries only and costs a fraction of its higher-end counterparts like Windows Vista Home Premium.

'It (Starter Edition) is the most affordable Windows to date,' said Nabil Chebbi, Microsoft's director for its Windows Client Business Group for South-east Asia.

The low-cost offering is based on the same concept as its predecessor - Windows XP Starter Edition - which made its worldwide debut in Thailand three years ago. Available in English at first, the new version targets first-time PC users and will eventually be released in over 70 languages and in 139 countries.

Singapore's status as a mature IT hub means Vista Starter will not see the light of day here, but Mr Chebbi said that the firm offers other local programmes to make its products available - and affordable to those in need.

'We see Vista Starter as part of our vision to have one PC in every home. That vision really is successful in many countries but when we go to emerging markets, the vision has a lot of limitations,' he told BizIT.

Pricing for Vista Starter is undisclosed but its predecessor reportedly cost less than US$40 in Thailand, significantly cheaper than a standard version of Windows XP.

Besides carrying a much lower price tag, Vista Starter differs from other Windows products in a number of other ways. For one, it is only extended to Microsoft's OEM (original equipment manufacturer) channels which is made up of small computer assemblers and major PC makers.

Consumers cannot buy it off the retail shelves of IT stores but instead the OS will come pre-loaded with budget systems offered by these partners. In Indonesia, for example, Mr Chebbi said Acer and Toshiba have thrown their weight behind the product and branded Vista Starter PCs, which comes complete with a monitor and other peripherals, are retailing for around US$350 to US$450.

It also features a host of instructional videos and tutorials to help novice PC users get up to speed with their maiden computers. However, unlike other mainstream Vista variants, customers can only open up to three applications at any one time on the cut-priced version. In addition, Vista Starter will run on lower-end hardware since it is squarely-aimed at entry-level PCs. The software can only be installed on computers powered by Pentium III processors and below, such as Intel's budget Celeron offerings, as well as AMD's Duron and Sempron chips. It requires a minimum of 386MB of RAM, although 512MB is recommended, as well as 17GB of hard-disk space.

'The entire Vista family is suited to different needs. For example, Vista Premium will run on middle to high-end PCs. Vista Starter, however, is running on lower specs,' Mr Chebbi explained.

The launch of Vista Starter serves as an extension of Microsoft's new strategy of trying to tap into the market potential of emerging markets without forgoing its universal product pricing policy.

Market analysts expect the number of PC users to exceed the one billion mark by the end of this decade, fuelled largely by rising computer penetration in developing countries like China and India.

However, Microsoft's full-priced Windows products are typically beyond the reach of many of the citizens in such markets, prompting the firm to delve into a low-cost alternative to fill the void.

The original Windows XP Starter Edition was developed to allow Microsoft to be part of a budget PC programme spearheaded by Thailand's Ministry of Information and Communication Technology in 2004.

At the time, Thai authorities were offering other OS alternatives such as Linux to keep the cost of computers down. However, market watchers believed that the proliferation of affordable hardware could worsen the piracy problem as buyers were likely to replace the pre-installed Linux OS with bootleg copies of Windows.

Against this backdrop, Windows XP Starter Edition gave Microsoft inroads into such government projects while helping to stem further piracy losses. At the same time, by limiting functionalities, the firm also carved out a new market segment of first-time PC users without cannibalising sales of standard Windows products among more affluent and IT-savvy customers.

After its debut in Thailand, Microsoft Windows XP Starter Edition was subsequently localised and launched in Indonesia, Malaysia, Russia and India in the same year. The product was eventually adapted in a total of 24 languages and was introduced in 139 countries.

'There are already more than a million families experiencing the benefits of Windows XP Starter Edition,' said Mr Chebbi.

And unlike the first product which emerged as an afterthought, Vista Starter was part of Microsoft's new OS strategy from the very start.

'It (Vista Starter) is part of the Vista family,' he stressed. Based in Singapore, Mr Chebbi said that he is now working with a local team, as well as counterparts in various Asian markets, to explore possible Vista Starter tie-ups with regional governments.

This article first appeared in BT on March 12, 2007