Growth, investment are keys to overcoming economic downturn: Microsoft chief

(ATTN: ADDS with investment plan, meeting with President Lee Myung-bak from para 13)
SEOUL, Nov. 3 (Yonhap) -- The chief of Microsoft Corp. stressed Monday that aggressive growth through investment is the key for companies struggling to cope with the dwindling economy.

"At the end of the day, the only way to really move forward is to continue to
push new technology, new products and new innovations that have the opportunity
to help all of our customers, improve businesses, their lives, reduce cost and
etcetera," Steve Ballmer, chief executive of the world's largest software
company, said at a breakfast meeting with South Korean business leaders in Seoul.
"The best solution for tough business times is growth, not contraction," Ballmer
said, highlighting that "now is not the time to forget that lesson."
The executive also underlined that Microsoft does not plan to cut back on
investment amid an expected slowdown of the global economy.
"We're not cutting back our investment. We may grow our investment slightly less,
but we're not cutting our investment."
At a July shareholders meeting, Ballmer said Microsoft would increase its
operating expenses by US$4 billion in fiscal year 2009, the largest increase any
company has ever proposed.
Microsoft is also focused on investing "broadly" in various fields, the executive
said, underscoring that what a company learns in one business can be applied into
another.
"The same graphics software used (in the) Xbox game console is used in design
systems for next-generation automobiles as a place like Hyundai Motor."
When asked about Microsoft's upcoming "cloud-based" operating system, Ballmer
said that cloud-computing services are "inevitable" for the industry.
"Some people will say is this in Microsoft's best interest, I'll say its
inevitable, so it better be in our best interest. That's why you see us embracing
this future, not resisting this future."
Microsoft unveiled its new Windows software, dubbed Windows Azure, last month.
The so-called cloud-based system stores and runs user programs and data on a
remote Microsoft computer-server farm, stepping up competition with similar
services run by Google Inc.
Ballmer also praised South Korean tech companies for possessing a "leading edge"
in the global technology market and expressed his wish to partner with more South
Korean companies for "fantastic opportunities" in the future.
Highlighting Microsoft's commitment to South Korea, the CEO said in a meeting
with President Lee Myung-bak later in the day that the company will invest $60
million in the next three years to promote training of software-related experts,
establish new software companies and to help these businesses expand abroad.
The local affiliate of the multinational corporation has been preparing a global
partnership agreement with South Korean software businesses and signed a
memorandum of understanding with state-run Korea Institute of Multimedia Content
& Software to work together in this field.
The funds are to be allocated starting in 2009 with $20 million used every year.
The software industry has been designated as one of the 22 top future growth
engines by Seoul.
The Microsoft CEO, in addition to visiting the presidential office Cheong Wa Dae,
met with Nam Yong, head of LG Electronics Inc., and signed a memorandum of
understanding to cooperate in the joint development of smart phones. LG
Electronics is the world's fourth-largest handset maker by volume.
(END)