The world's largest software maker,
) will invest $100.0 million in a new research center in Rio de
Janeiro, Brazil. The investment will cover research and
development, and other entrepreneurial programs.
This will be the fourth Microsoft Research Advanced Technology
Laboratory built by the company in Brazil (previously opened in
Germany, Israel and Egypt). The lab will house the Bing search
engine as well as a business accelerator that will support 15
startups in the following 2 years. The startups will be funded
from an investment fund, which is a wholly owned subsidiary of
Microsoft's investment is critical for the success of the new
startups, which will lead to job creation and boost the nation's
growth. Also, Microsoft's initiative will open new avenues for
the IT sector in Brazil, which may become a critical part of the
nation's overall development in the future. The Latin American
country can develop into a technology hub going forward.
Rio is an ideal choice for Microsoft's investments.
Stalwarts such as
General Electric Company
) have already opened research centers in Rio. Moreover,
Cisco Systems, Inc.
) are planning to expand in the region as well.
Microsoft has been investing in the Latin American nation
since 2008. Earlier, the company started a project for opening
cyber cafes throughout the country and further including
educational and job-training activities for the youth.
Microsoft's operating systems are installed on the majority of
computers in the world. The company has been innovating on many
fronts and has many new and exciting products lined up.
For the first quarter of fiscal 2013, Microsoft reported
revenue excluding deferrals of $16.01 billion, down 11.4%
sequentially and 7.9% from last year, missing estimates by 2.5%.
The softness in Windows was expected, since customers were
delaying purchases ahead of the Windows 8 launch.
Microsoft Corp. has a Zacks #3 Rank, which implies a Hold
rating in the short term (1-3 months).
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