Microsoft has teamed up with six local computer refurbishment partners as part of its secondary PC programme to make computers affordable to the poor.
Ali Hoballah, Middle East and Africa regional GM of Microsoft Unlimited Potential Group, met with South African PC refurbishment partners to discuss the way forward for delivering cost-efficient, reliable and environmentally responsible computing.
Two years ago, Microsoft founder Bill Gates said Microsoft wanted to put a computer on every desk and in every home. The software giant expanded its vision by creating Microsoft Unlimited Potential, an initiative that saw global partnerships with governments, education institutions and organisations, to bring the benefits of relevant, accessible and affordable software to five billion people.
According to a Microsoft whitepaper, the organisation's goal is to reach the next one billion by 2015.
Microsoft estimates tens of millions of still-usable computers are discarded each year globally. International technology firm Gartner says two-thirds of used PCs are discarded or stored.
In light of this, the Microsoft Authorised Refurbisher programme is being piloted in Europe and Africa. As part of Microsoft's Partners in Learning initiative, the Fresh Start for Donated Computers programme aims to provide computers with genuine Microsoft software to under-resourced schools and community centres.
Locals on board
South African companies Bridgeport Technical Services, Device SA, Just PCs, MICO SA, Pax Computers and Sylvara Technologies have come on board and will refurbish old PCs and resell them to the public.
Hoballah says the refurbished PCs are equipped with genuine Microsoft XP software, access to software updates, after-sales support and a recycling option for the PCs at the end of their lifecycle. Vista will not be installed in the secondary PCs because they are normally more than three years old and will not work with the newer operating system.
"Microsoft realised that most of its innovation efforts have been targeted at customers within a disposable economy, but there's a large majority of people that are not benefiting from it,” says Hoballah.
“In SA, for every three new PCs, there's one secondary PC available. Ultimately, the biggest benefit of the programme is its social economic impact; it generates job opportunities and skills development.”
According to Hoballah, research from the IDC and Microsoft found the average cost of a refurbished PC was about $242. This is a reduction cost percentage of 70% to 80% of a new model.
Economic crisis
Hoballah says the economic downturn will prove favourable for Microsoft as corporates strive to cut costs. The pilot programme has been deployed in four countries: SA, Czech Republic, Pakistan and Nigeria.
He points out that the US has dominated the market for refurbished PCs, but there is huge potential for growth in demand in SA. As Microsoft and its partners learn from the experience of the pilot project, they will expand further, he notes.
Andrew Craig, MD of MICO SA, says the company purchases old PCs from corporates, such as Tiger Brands. The computers are then reformatted, refurbished and sold to the public via their distributors.
“The cheapest refurbished PC we offer is worth about R500 and the most expensive is R2 000. The SA market for PCs is growing - in the last three years, the year-on-year results showed a 30% growth and we don't expect that the figure will change soon. We've found that 50% of our customers are SMEs and call centres, 30% are education institutions, and 20% are home users.”
Fady Gerges, MD of Device SA, points out that fraud remains one of the biggest challenges, with some dealers, claiming to be certified refurbishers, selling second-hand faulty computers.
Hansie Fourie, CEO of Ingram Micro, a Microsoft PC refurbisher distributor, says: "The IT industry in SA has matured; however, it's important to note that the market needs to differentiate between a refurbished and a second-hand PC dealer. A major concern is second-hand dealers who are looking to make a quick buck regardless of whether the PC works or doesn't work.”
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