Microsoft, Baidu In Deal To Push Windows 10 In China

Microsoft is planning to ditch its own search engine for users of the Microsoft Edge browser in China, offering them local rival Baidu instead.

With millions of Windows PCs already used in China, the deal will allow the company to extract revenue easier than before. Additionally, Baidu will deliver Universal Windows Applications for search, video, cloud and maps for Windows 10.

Microsoft, for example, announced an agreement with its cloud partner in Beijing, 21Vianet, and IT company Unisplendour to provide custom hybrid cloud solutions and services to Chinese customers, particularly state-owned enterprises.

This deal with Baidu will hopefully assist Microsoft in capturing additional users when it comes to its recently introduced Windows 10 operating system. Currently, more than 10 million devices in the country run Microsoft’s latest OS.

For its part, Baidu will be helping Microsoft distribute Windows 10 via its new “Windows 10 Express” channel.

China is considered as one of the most lucrative markets in the world and continues to become a more and more important market for global technology companies.

Microsoft aims to see Windows 10 on 1 billion devices worldwide by 2018.

The deals-which include a tie-up with a state-owned Chinese military-technology consortium-were disclosed on Wednesday, the same day Microsoft chief executiveSatya Nadella joined other USA business leaders in meeting with Chinese President Xi Jinping in Seattle. Bing still powers the internal Windows search function – including in China – and Cortana, Microsoft’s virtual assistant software. It is expected to win numbers in the country given Baidu’s presence in China (it is touted as China’s Google). Therefore, Microsoft Corporation (NASDAQ:MSFT) preferred the easy method of tapping the 600 million-plus users through Baidu Inc (ADR) (NASDAQ:BIDU) to upgrade to new OS. Microsoft is also seeing some threat from the Chinese government itself, which is trying to push for a Linux-based operating system in lieu of never-ending allegations of spying between the U.S. and China.