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Microsoft chief urges growth through investment in tough times
AFP - 1 hour 38 minutes ago
SEOUL (AFP) - - Microsoft chief Steve Ballmer said Monday that growth through investment is the key for companies struggling to ride out an economic slowdown.
"The best solution for tough business times is growth, not contraction," Ballmer told South Korean businessmen, adding that "now is not the time to forget that lesson."
He said the US software company would not cut back on investment despite an expected slowdown in the global economy.
"We may grow our investment slightly less, but we're not cutting our investment," he said at a breakfast meeting is Seoul, according to Yonhap news agency.
For years, Microsoft has been trying to expand its software dominance beyond offices and homes.
Last month it unveiled its new Windows software, Windows Azure, which can store and run user programmes and data on a remote server on the Internet. The move came as the firm tries to compete with similar services from search engine Google.
"Some people will say is this in Microsoft's best interest, I'll say its inevitable, so it had better be in our best interest. That's why you see us embracing this future, not resisting this future," Ballmer said.
He said Microsoft is also focused on investing "broadly" in various fields, underscoring that what a company learns in one business can be applied to another.
On Monday Microsoft and South Korea's Hyundai auto group opened a research centre to develop new IT products and services for automotive application.
The firms "share a similar vision for the role that information technology will play in connecting people to information, communications, and entertainment while they are in their cars," Ballmer said in a statement.
Hyundai said the technologies developed at the centre would be applied in its cars from the second half of 2010.
In May the two forged a deal to develop a new in-vehicle music and entertainment system, which will be voice-controlled and linked to other handheld devices.
The Hyundai group, which includes affiliate Kia Motors, controls 70 percent of the country's auto market and accounts for 5.4 percent of gross domestic product.
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