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Top Micorosoft execs due for hi-tech talks
By Elias Hazou
(archive article - Thursday, February 9, 2006)
SENIOR representatives of computer giant Microsoft are due on the island next week to discuss possible co-operation in hi-tech research, a development that has been much advertised by the government.
It comes on the heels of Commerce Minister George Lillikas’ attendance at the annual Microsoft Government Leaders' Forum in Lisbon, at the invitation of Microsoft chairman Bill Gates.
A potential deal with the software and hardware behemoth would be three-pronged: participation in the creation of an information technology (IT) academy, the establishment of a Technological Park, and the fostering of the local software development industry.
The stated underlying objective is to disengage the Cypriot economy from tourism – diversification is the key word.
But according to Alithia newspaper, the co-operation deal now on the cards is more or less the same as the preliminary agreement reached by the previous administration back in 2002.
At the time, former Finance Minister Takis Klerides had visited Microsoft’s Seattle headquarters for talks with leading MS officials. The deal envisaged then involved the bulk purchase of licensed MS products – Windows operating systems and MS Office – by the government. In exchange, Microsoft would make donations to the University of Cyprus and the Education Ministry – free software for desktops.
Similar agreements had been made between Microsoft and the governments of Jordan, Lebanon and Malta.
But despite the apparent advantages, when the Papadopoulos government came to power it proceeded to cancel the agreement, ostensibly because of suspicion of kickbacks.
Alithia wondered yesterday why, four years down the line, essentially the same agreement is being rehashed.
Apart from the time wasting, questions are also being raised as to the viability of the project. The
state-sponsored fledgling Technological Park has so far managed to produce financial irregularities and allegations of corruption in its running. Critics say it is na?ve to think a big corporation would set up operations in Cyprus, just because hi tech research is supposedly a government priority.
Sceptics also wonder why a major software player would be attracted to Cyprus, a location that lacks the necessary infrastructure and highly-specialised workers. Moreover, if the venture is sponsored by the state, does that not entail meddling and bureaucracy that would stifle free enterprise and private initiative?
But George Lakkotrypis, Microsoft country manager (Cyprus) begged to differ, saying it was wrong to view government involvement with distrust:
“Around the world, partnerships between the public and private sectors are common. You need government endorsement to boost a software market.”
Lakkotrypis declined to comment on whether Microsoft was upbeat about an imminent agreement with the government.
“Let’s wait and see until the meeting,” he said.
He was referring to the arrival of the Microsoft delegation, led by Ali Faramawy, Vice-President and Regional Director for the Middle East and Africa. Faramawy will be meeting sometime next week with Commerce Minister Lillikas and other government officials.
But what are Cyprus’ chances of becoming a centre for hi-tech business? In September 2004, the Chamber of Commerce (KEVE) and the Employers and Industrialists federation (OEV) jointly organised a seminar on the prospects of software development on the island.
In a presentation entitled “Preliminary Project Concept Report” Yves Raynaud, general manager of the French Riviera Chamber of Commerce and Industry, pointed out some of Cyprus’ advantages but also drew attention to a number of drawbacks.
These included: limited number of Cyprus inhabitants; remote geographic position vis-?-vis Western Europe; limited airline links and poor airport facilities; low level of present High Tech activities – companies, students, professors, R&D programmes; very low level of annual foreign investments.
Cyprus currently spends just 0.35 per cent of GDP on R&D, lagging far behind other European countries.
But Lillikas recently pledged the government would quadruple this figure by the year 2010. The minister said the technological park was in the pipeline, and that the 2007 national budget would include the relevant expenditures. Already a feasibility study had been carried out.
Copyright © Cyprus Mail 2005
