Microsoft invests in skills while UK battles recession

While Oracle’s OUG held their annual conference this week, Microsoft has been pushing out new products and investing in European skills. On Tuesday, Microsoft announced its investment of a further £4million in NGOs running community skills training projects in 30 countries across Europe. The investment is part of the company’s drive to create employment opportunities for young unemployed people, the older generation and people with disabilities.

Following on from this, Microsoft have backed the housing of a £20million cloud computing datacentre in Inverness, run by Scottish IT firm Alchemy Plus.

Also this week, Microsoft has launched the latest beta of Windows Vista Service Pack Two (SP2), which became available on Thursday. The code will be available to who join Microsoft’s Customer Preview Program (CPP).

Mike Nash, Microsoft’s corporate vice president for Windows Product Management, said: "The CPP is intended for technology enthusiasts, developers and IT pros who would like to test SP2 in their environments and with their applications prior to final release." On Wednesday, Microsoft released Open XML Document Viewer, a plug-in working within Firefox to allow open XML documents to be viewed within the browser, and which can be used on Windows and Linux plaforms without installing Office.

On the same day, Microsoft announced that it has halved the number of criteria LARs must meet to hit rebate targets, meaning that partners will earn less on volume licensing deals. The new programme will come into effect on 1 January 2009. Simon Aldous, UK partner group manager at Microsoft. “We are simplifying the scheme, halving the number of metrics on which rebates are paid.”

Outside of Microsoft, investment in IT is proving to be a popular choice amongst some businesses in an effort to beat the credit crunch. Red Hat, the IT services provider, reports that it has had a high demand for Linux since the recession began, with its revenues growing 30% year-on-year. Chief executive Jim Whitehurst said: "The downturn is good for open source software. We have an embarrassment of opportunities. In a difficult economy our message sells well."

It isn’t just IT firms reporting the financial benefits of investing in IT. Insurance firm Kennedys and Rowanmoor Pensions are now using the cloud computing model of online services to virtualise its IT operations, and claiming to have saved £350,000 in the process.

All this in one week just makes you realise that even during an economic downtown industry development and the IT market is still going strong. CIO magazine said that now is the time for CIOs to prove their worth which means there really will be some winners in a recession.

Inatech has been working with businesses to find these solutions; CIOs struggling to identify core IT needs for their company should explore the priorities to maximise customer relationships and increase efficiency.