About this Author

John Yunker is founder of Byte Level Research and author of the widely acclaimed book, Beyond Borders: Web Globalization Strategies and editor of Global By Design. He has covered the emerging field of Web globalization for half a decade and has published a wide range of reports dedicated to best practices in Web localization and internationalization.
About this blog
Going Global focuses on the risks and rewards of expanding into new geographic and cultural markets, from Web globalization to international marketing to global usability.
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Monthly Archives
April 30, 2005
Posted by John Yunker
According to Deloitte's 2005 report on the retail industry, the "need to go global" is one of the top 10 issues facing retailers. Here are two interesting excerpts...
Globalization gained further ground in 2003. Currently, these 250 retailers sell in 135 different countries. The average retailer sells in 5.5 countries. This average does not include the six retailers who are truly global in scope, operating in nearly all major countries around the world. In comparison, the 1997 results showed that retailers back then operated in only 4.5 countries, on average.
International sales have become important to many retailers growth strategies. Published reports noted that Tesco showed a 30 percent growth rate outside of Britain compared to 7 percent at home. Almost 49 percent of its square footage is overseas. Wal-Marts international division saw a 17 percent increase in sales for 2003; the division now represents 18 percent of Wal-Marts total sales.
Despite Wal-Mart's growing international revenues, the report does question why American retailers have been relatively slow to expand globally. I would agree. The US market is so vast that many companies have only recently awakened to the world outside their borders. Best Buy will soon be dipping its toes in China.
And I would argue that Wal-Mart, for one, should be in 30 markets right now instead of its current nine. There is a real urgency these days to get into these emerging markets early. In retail, there is a first-mover advantage, because you can get the best real estate at the best prices, developing partnerships with the best suppliers and distributors, and, more important, develop relationships with customers. In the long run, Wal-Mart's slow expansion could hurt, because European retailers, like Germany's Metro, aren't sitting still.
The report notes, "European retailers, on the other hand, have been far more adventurous, first gaining multicultural experience across national boundaries within Europe, and then applying the lessons learned by investing globally. Today, a visit to modern shopping areas in emerging markets in Asia, Latin America or Eastern Europe will involve seeing many European retailers, but few Americans."
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+ TrackBacks (0) | Category: Business Globalization | China
April 29, 2005
Posted by John Yunker
I've been writing so many blogs about China over the past few months that today I went ahead and created a new "China" category. It's impossible to keep up on all the China-related business globalization news, but here are a few items that recently caught my eye...
UPS survey finds China a high priority
UPS put out a press release today citing an executive research study that found that "a remarkable 80% of the executives surveyed say that China will be playing an important role in their company's growth objectives within the next three years."
Nike and Toyota stumble in China
This Reveries article highlights companies that have stumbled when entering China...
Nike's not alone on this particular learning curve, though. The Chinese don't care much for Colonel Sanders, either. And Toyota blew it with one ad in which their Land Cruiser was "towing what appeared to be a Chinese military truck, and other featuring stone lions, a traditional symbol of power in China, bowing down to Toyota's Prado GX. Not surprisingly, some of China's 1.3 billion citizens "balked at the perceived insult to their armed forces and at the notion of bowing down to anything -- even a car -- representing Japan."
Best Buy entering China
According to the Journal, Best Buy will be testing its first superstores in China...
Best Buy plans to open stores in China, as a way to test and evaluate the Chinese market for consumer electronics and appliances. A spokeswoman wouldn't say how much the company has earmarked for expansion in China or how many stores the company plans to open.
Lenovo: A view from the top
Here is a great Q&A with a Lonovo board member, Lee Sen Ting. Lenovo is acquring IBM and Ting had this to say about the deal:
- "Our strategic acquisition of the IBM brand name and human resources are solid steps that accelerated the internationalization of our company."
- Chinese firms could enhance their brand positions considerably with the right strategic partners, and the hiring of Western talent would offer significant insights into international corporate culture and governance.
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April 28, 2005
Posted by John Yunker
After missing its Q1 revenues estimate, Lionbridge is taking a hit in the stock market, down about 10% over the past two weeks.
And here's why, according to an AP article: "The company -- whose services help clients such as Microsoft Corp. globalize their products -- posted a loss of $217 thousand, or nil per share, compared to a profit of $693 thousand, or 1 cent per share. Revenue was $38.8 million, down from $39.9 million last year."
These are tough numbers to swallow, particularly at a time when it seems so many companies want to take their businesses global. But I do think the market is overreacting a bit. Lionbridge is diversifying itself from relying so heavily on large tech clients like HP and Microsoft. When the tech sector coughs, Lionbridge gets the flu, and the tech sector has been coughing a lot lately. Fortunately, Lionbridge is winning non-tech clients; it claims a tech/non-tech client ratio of 55%/45% today (tech clients comprised 70% of all clients just 18 months ago).
But analysts seem to be stuck on that pricing pressure comment from CEO Rory Cowan. Pricing pressure is a recurring theme in this industry. I do believe Lionbridge's forthcoming hosted translation memory platform is a good step in the right direction, but I'm not sure if it will be enough to get the margins back up again long term. Keep in mind that these large enterprise clients know full well what translation should cost because they have translators on staff and multiple vendors on call. It's a brutal market, no question.
But the good news is that the need for Lionbridge's services isn't going away anytime soon; the globalization services market has not even begun to take off. And the company is getting its production costs down thanks to its two India operations centers. i think if Lionbridge can do more to move up that so-called value chain it will do just fine.
On a separate note, Bowne Global Solutions posted a healthy increase in revenues for Q1. So why do I keep hearing rumors that they're up for sale and that Lionbridge is a potential suitor?
So many rumors, so little time...
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+ TrackBacks (0) | Category: Globalization Vendors
Posted by John Yunker
Perhaps I expected too much. I loved The Lexus and the Olive Tree, and when I heard the title of Tom Friedmans new book back in the fall, I got my hopes up. Just by the title, I knew what he was getting at, and I was thrilled to see such a high-profile columnist calling attention once again to this phenomenon that is globalization.
But now, having read The World is Flat, Im a little disappointed. And yet I will recommend the book (three stars on Amazon) because I agree with his message, and I think its critically important that we have writers like Tom out there explaining the many ways that globalization makes the world a better place to live.
However, the book could have been much better with some ruthless editing. As a reader, I dont like being talked down to, and I feel that Tom does that a bit too much, primarily by repeating many of the same concepts and buzzwords over and over again. For example, he explains why the world is flat early on. Its a good metaphor, but Tom proceeds to attach "flat" to everything he sees. He sees customer service reps in India "flattening" their accents. He writes of the "coefficient of flatness" and "compassionate flatism." I felt as if Tom tried way too hard to make his flat metaphor stick. And maybe it will stick.
Here are a few nuggets from the book that did stick with me:
- "In the future globalization is going to be increasingly driven by the individuals who understand the flat world, adapt themselves quickly to the processes and technologies."
This is such a key point. The interesting thing about globalization is that it empowers individuals, even more than countries.
- Tom stresses that globalization helps the small firms as much as the big firms, perhaps even more. As the owner of a small firm, I agree. Tom quotes UPS CEO Mike Eskew: "You know who the majority of our customers and partners are? Small businesses. They are asking us to take them global. We help these companies achieve parity with the bigger guys."
- Tom talks about Eriksen Translations, a New York-based translation firm featured in my firm's Savvy Clients Guide to Translation Agencies. Tom mentions how Eriksen embraced Skype, the VoIP service that is revolutionizing the telecoms industry. After the first six months of using Skype, the company cut phone costs by 10%. I only wish Tom had talked a bit more about translation agencies these firms have been outsourcing work for decades and have always been early adopters of new technologies, from email to VoIP.
- "The Indians and Chinese are not racing us to the bottom. They are racing us to the top." The Lenovo/IBM deal is one example. And just wait until Chinese automakers start making their way into the US
- "China has more than 160 cities with a population of one million or more."
Wow.
While I didnt love this book, I liked it. If youve been reading The Economist for the past few years then much of this book will come across as old news. But if not, its worth a read. Tom is truly passionate about all that is good about globalization, and it comes through in his writing. The world needs more voices like his to prevent the US (and other nations) from knee-jerk protectionism as we collectively slouch toward a more connected world.
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+ TrackBacks (0) | Category: Business Globalization | Cultural Issues | Globalization Vendors | Translation | Web Globalization
April 24, 2005
Posted by John Yunker
This LA Times article nicely sums up many of the reasons why globalization has been good for US businesses, that is, those US businesses who take full advantage of globalization. Here's an excerpt:
Take General Electric Co., where rising profit from foreign operations pushed overall earnings up 25% in the first quarter. And last week Caterpillar Inc. in construction equipment, Intel Corp. in computer chips and EBay Inc. with an enormous rise in international auction trading all reported sharply higher earnings thanks to global growth.
Indeed, a quarter of all U.S. corporate profits, or about $225 billion, were earned outside the United States last year, according to the federal Bureau of Economic Analysis.
GE was a pioneer in embracing global markets (although its global Web site could use some improvement). And eBay is betting big on emerging markets like China, Poland, and (I predict) Russia by the end of this year.
By this time next year, companies like eBay, Amazon, and Google could be earning as much (or more) of their revenues from outside the US as they do from inside the US. This is a profound transformation, in which smart and aggressive companies will transform themselves from US companies serving foreign markets to global companies serving local markets. Globalization is good for companies that see it as much of an opportunity as a threat.
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+ TrackBacks (0) | Category: Business Globalization | Web Globalization
April 23, 2005
Posted by John Yunker
This article in the New York Times about the lack of language support in four New York City hospitals is as sad as it is maddening:
When a Spanish-speaking hospital receptionist refused to interpret during her lunch hour, doctors at St. Vincent's Staten Island Hospital turned to a 7-year-old child to tell their patient, an injured construction worker, that he needed an emergency amputation.
With no one to bridge the language gap for another patient, a newly pregnant immigrant from Mexico with life-threatening complications, doctors pressed her to sign a consent form in English for emergency surgery. Understanding that the surgery was needed "to save the baby," the young married woman awoke to learn that the operation had instead left her childless and sterile.
There are more than 150 languages spoken in the New York metro area but the article states that nearly all the problems cited in the legal complaint filed against the hospitals concern Spanish and Korea. I should think that these hospitals could have easily found local interpreters had they applied themselves.
But let's just assume that the hospitals truly were short-staffed and there wasn't an interpreter to be found...
Haven't these hospitals heard about Language Line?
Language Line is a phone-based, on-demand interpreting services. You simply pick up the phone, tell them what language you need support for (they support them all) and you get connected to an interpreter within seconds. You put the patient on another line and you can conduct your conversation relatively smoothly. Granted, if the patient is in bed at the time, the phone solution is far from ideal, but it can't be any worse than asking a seven-year-old to interpret.
I recently spoke with Language Line. They do a huge deal of work for hospitals and they even insure the quality of the work of their interpreters. I had assumed that most hospitals were aware of this service, or similar services. Perhaps the NYC hospitals were aware and did not want to pay (it can cost up to $2.50 per minute). Who knows. All I do know is that there is no reason for patients not to get the information they need in a language they can understand.
Yes, I know there are plenty of folks out there who will tell me that "this is America and people should speak English in America." I'm well aware. But let's assume an American is traveling to Russia on vacation and an accident ensues and the local hospital does not provide translation because "you're in Russia now and you need to speak Russian." I just think hospitals need to serve their patients, period, and that includes speaking to them in a language they can understand.
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+ TrackBacks (0) | Category: Translation
April 22, 2005
Posted by John Yunker
Based on a recent batch of Q1 earnings numbers, it's safe to say that strong non-US revenues is the recurring theme. In eBay's case, non-US revenues are especially critical as the US growth continues to slow. Here are a few earnings updates...
eBay (from the NY Times)
EBay, which has been growing swiftly in the United Kingdom, South Korea, France and Italy, reported strong international sales. Revenue outside of the United States was $393.8 million, up 52 percent from the first quarter of 2004. EBay added more new users in China than from any other country, and it's now the No. 1 e-commerce company there. Whitman said eBay would debut PayPal in China soon, and it is already promoting an escrow payment service similar to one in South Korea.
Google (from the WSJ)
"International operations represented 39% of Google's revenue, compared with 35% the previous quarter, partly because of a recent agreement with the AOL Europe division of Time Warner Inc."
UPS (from earnings press release)
"International operating profit jumped 25.6% to $348 million, while U.S. domestic operating profit increased almost 13% to $1.03 billion."
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+ TrackBacks (0) | Category: Business Globalization
Posted by John Yunker

TRADOS is promoting version 7 of its translator desktop software, and it looks like the key improvement in this edition is full XML support, including the hot new DITA standard. These acronyms mean very little to marketing teams, but will mean a great deal to information architects and IT departments, the folks who are struggling to make content and translation management work smoothly (and cost-effectively) across enterprises.
Support for open standards is all the rage in the content management industry and this is driving force in the translation software space as well. This is great news for both companies and their vendors, because XML-based systems, software, and workflow is now (finally) starting to pay off.
Here are the new or improved features listed on the TRADOS press release:
- Complete XML Open Standards Support - Increased compatibility, no matter what the format, including XLIFF, DITA, conditional XML and other common XML flavors
- Enhanced TMX Compliance - Translators Workbench fully supports the latest open TMX standard, TMX 1.4b, as well as related standards such as Segmentation Rules Exchange (SRX).
- Full Support for Hindi and Twenty Other New Languages - Complete Unicode Language Support - Localization into the languages spoken in emerging markets such as India are becoming more and more vital for enterprises going truly global, and TRADOS fully supports this trend.
- Improved Ease of Use - Including improvements to user experience for frequent activities such as AutoText to store frequently used expressions, Change Case for rapid capitalization of text and better performance for large documents Complete XML Open Standards Support - Increased compatibility, no matter what the format, including XLIFF, DITA, conditional XML and other common XML flavors
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+ TrackBacks (0) | Category: Globalization Vendors
Posted by John Yunker
Apparently needing to boost its Arabic-language localization capabilities, SDL acquired Dubai-based Lingua Franca. Here's the press release. Arabic is one of the more expensive languages to support -- and it can be brutal finding good talent these days, particularly since the US government is creating a seller's market for Arabic language services.
I filed this entry under the "Globalization Vendors" category, but given the pace of consolidation in this industry lately, I'm considering adding a "Consolidation" category. There's lots more such announcements coming...
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April 21, 2005
Posted by John Yunker
Two days ago I wrote about Best Western's Web globalization efforts.
I took the Best Western Web site to task for a relatively poor global gateway. However, it was pointed out to me this morning that I missed one of the key gateway elements. As shown below, I noticed the "Global Best Western Sites" button to the left but I did not notice the language links under the room reservation form.

I am impressed to see the links presented in the native script; this is a subtle but very important detail. Too many Web sites still use links such as "Korean" or "Japanese," overlooking the fact that the user might actually prefer to see text in his or her language.
On a technical note: To enable the display of these scripts across all computers, the text is actually embedded within graphics. This is also a nice touch. Eventually, Web sites will use Unicode as the primary character set so any number of major languages can be displayed on one Web page, but we're not there yet. The problem is that there are simply too many computers out there that don't have the necessary fonts yet to displays these different character sets. Embedded text is still the best way to go in instances such as this.
Okay, now for the bad news about this gateway: It is simply not "findable" enough. I certainly overlooked it and I suspect I'm not alone. The ideal location for these links would be at the top of the Web page, preferably to the right. I call this the "sweet spot" and for good reason -- more and more companies are moving their gateways to this location. Why? Because they too are learning from in-house usability studies that people tend to look at the top of the page first when searching for country or language-specific Web site links. And it's safe to assume that as more sites adopt this location for their gateways, the more conditioned Web users will become to looking for gateways there.
That said, I'm happy to see Best Western using a gateway on their home page. The next step is to give this gateway some better real estate so more users can find it.
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+ TrackBacks (0) | Category: Web Globalization
April 20, 2005
Posted by John Yunker
Sears is hoping to expand sales to the US Latino market with a new line of clothing called Latina Life, due out this fall.
In preparation for this marketing push, I suggest that Sears rethink and re-invest in its Spanish-language Web site. For starters, there needs to be a link somewhere -- anywhere -- on the Sears.com Web site that indicates that there is a Spanish-language Web site. Drop by Sears.com and see if you can find it. I sure couldn't.
And there really is a Spanish-language Web site.
It's located at www.searsenespanol.com.

Unfortunately, searsenespanol.com is hardly an intuitive URL, and I'm certain a fair number of Latinos drop by Sears.com hoping to find Spanish content and going away frustrated.
But, assuming people do find the Spanish-language site (say by means of direct mail or advertising), they will still end up frustrated when they discover that most of the actual content -- like the product descriptions -- are still in English. I call this situation a "local facade" -- and it can be a very bad thing if a company doesn't effectively manage user expectations.
Not surprisingly, Sears scored poorly in our 2005 Web Globalization Report Card, but it really wouldn't take too much of an investment of time and money for Sears to turn things around. Perhaps this is the year that Sears does just that ... I'll be checking back when that new line of clothing debuts....
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+ TrackBacks (0) | Category: Web Globalization
April 18, 2005
Posted by John Yunker
The hospitality industry is embracing Web globalization in a big way these days, and that's a very good thing, because the world is relying on the Web to book hotel rooms and flights like never before.
Here's a press release from Best Western announcing a major boost in their global Internet presence. According to the release, "100% of the company's online hotel and booking information is now available in French, German, Italian and International Spanish. Additionally, all Asian hotel property listings and reservations web pages are available in simplified Chinese, Japanese and Korean."
(NOTE: I always cringe when I see the term "international Spanish" used in a press release; it's like saying "International English.")
So here are the interesting details from the press release:
- Internet bookings comprise 44 percent of all Best Western reservations. "The Internet is our fastest growing distribution channel," said Ric Leutwyler, senior vice president of brand management and member service.
- Best Western's global Internet bookings have grown an average of 54 percent per year over the past five years.
- The Web globalization project lasted eight months and consisted of the translation of more than 4.2 million words.
- Globalization vendor SDL managed the project. SDL is included in our 2005 Savvy Client's Guide to Translation Agencies.
- On-going translation requirements are estimated at 10,000 new words per week; a continual process that will be managed by SDLWorkFlow.
- Best Western made use of SDL's machine translation engine to help keep translation costs to a minimum.
So how good is the Best Western site?
In our 2005 Web Globalization Report Card we evaluated 14 Web sites in the hospitality/travel industry; unfortunately, Best Western was not one of the sites evaluated.
So I took a brief global tour of the country Web sites and was happy to see them all using a generally consistent global template. I would have liked to have seen a better global gateway on the .com home page. The "Global Web Sites" button, shown below, is not the best way to direct non-English-speaking users to their Web sites:

Overall, I'd say Best Western is doing better than average, and certainly better than the likes of the Four Seasons and Omni Hotels. And as the world's largest hotel chain, Best Western is signaling to the industry that Web globalization has migrated from luxury to necessity.
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April 15, 2005
Posted by John Yunker
I spent some time with the folks at Idiom earlier this week and they are looking bullish on the future of their company in particular and the globalization industry in general. So are their investors, who just ponied up an addition $6 million in cash for sales and marketing, as detailed in this article.
According ot the article, "In January, Idiom said sales doubled for the second straight year during 2004 as several major international companies -- including General Motors, Catepillar and Symantec -- signed up for its WorldServer family of products. Other customers include: Adobe, Oracle, Motorola and Travelocity."
I'm in full agreement that the globalization services and software industry is bouncing back nicely this year. And, based on a number of conversations I've had over the past six months, I expect we'll we hearing about additional VC-fueled consolidations and expansion plans in the months ahead.
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+ TrackBacks (0) | Category: Globalization Vendors
April 14, 2005
Posted by John Yunker
In yet another sign that language services vendors believe software is key to their future growth, Transware has acquired GMS vendor GlobalSight.
Tom Kelly, the newly appointed CEO of the company -- to be called Transware (not GlobalSight) recently filled me in on some of the high-level details.
Although I plan to write an in-depth feature on this deal in Global By Design after I get more information, my initial thoughts are:
- This is a good news for GlobalSight. The company was floundering for the past 12 months and I think a creative and aggressive company like Transware is a good fit. Transware officially enters the big time with this acquisition.
- I dont believe that GlobalSights product is the reason for the software vendors floundering. The software does have a future, provided it is well priced, well managed, and plugged in to all other major CMS tools (not a simple task).
- Tom Kelly is from outside the localization industry, which I think could be a very good thing. Outsiders have the benefit of looking at the globalization industry as many new clients now view the industry with a sense of intimidation and bewilderment. As Ive said before, as this industry continues to expand, services firms must continually remind themselves that many of these new buyers need a great deal of education. Transware recently sponsored my participation an educational Webinar, so I have a feeling that under Toms leadership that this strategy will not only continue but possibly be expanded. After all, when you add software to the mix, you need to do even more education.
- Does this acquisition mean that services/software sales is the way of the future for all major services firms? And what about the assertion (made to me recently by Idiom) that clients want to keep their globalization services vendor and globalization software vendor separate? Certainly Idiom is doing well these days selling software independent from services. I suspect that their assertion probably rings truer in the larger enterprise space than the SME space, and perhaps both models will be equally successful. But the ultimate proof will be in in how vendors like Transware, Translations.com and SDL do in the years ahead selling services and software.
PS: Other language services vendors are also planning software-related announcements. More on this in the weeks ahead...
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April 7, 2005
Posted by John Yunker
Emerging markets are driving the Web globalization revolution.
Investment bankers use an acronym that is going to have a major impact on the future of the globalization industry: BRIC.
BRIC stands for Brazil, Russia, India, and China, the four countries that pose the greatest opportunities for long-term growth among emerging markets. Of course, the key words are long term these markets are anything but sure bets over the short term.
The localization industry has long used the acronym FIGS, which stands for French, Italian, German, Spanish, the most popular four languages chosen when companies enter Europe. CJK, for Chinese, Japanese, and Korean, is also frequently used when expanding in Asia.
But I see BRIC gaining currency in the localization industry, because where investment bankers see growth so too do the multinationals who hope to capitalize on that growth. And while FIGS and CJK are geographically oriented, BRIC focuses purely on opportunity. This is great news for translators of Tamil, Chinese, Russian, and Portuguese and the vendors who learn to speak BRIC.
(NOTE: This essay is from the April issue of Global By Design -- on newsstands everwhere!)
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+ TrackBacks (0) | Category: Web Globalization
April 1, 2005
Posted by John Yunker
The PR engines at globalization vendors SDL and TRADOS are busy churning out releases lately. Two of them are worth noting:
SDL claims its first "switcher"
As I mentioned previously, SDL is asking companies to drop their current translation software in favor of SDL software. I imagine SDL had their first switcher lined up before the whole campaign began and it just happens to be a very high-profile company: Sony Europe. Not too shabby.
TRADOS claims 71% market share
Meanwhile, TRADOS (the software company SDL hopes to "unswitch") sent out a release claiming a record year in revenues and a 71% market share of translation agencies and freelance translators. The number seems right to me, though I suspect it was higher a few years back. Still, I'll take a 71% share any day, particularly since this market as a whole continues to grow.
And that's not all...
There are rumblings underfoot of a new challenger to SDL and TRADOS with a new business model. I'll have more on this development soon.
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+ TrackBacks (0) | Category: Globalization Vendors
Posted by John Yunker
If you're a tech who develops Microsoft apps for the world, you probably already know about Microsoft's TechEd event in June.
But if not, they have a Global Development & Deployment track planned.
The track promises that "developers will be provided with the tools needed to develop World-Ready solutions that support multiple writing systems that are easy to localize. IT professionals will learn important skills in deploying Windows XP and Office 2003 Multilingual User Interface version to support global businesses from New York to Beijing."
Session details can be found here. Here are a few titles that jumped out at me:
- Deploying Office 2003 in a Multilingual Environment
- Custom Cultures and International Data
- Planning a Global Release: Many countries, Many Languages, One Process
I also recommend sitting in on Michael Kaplan's sessions on designing databases for the world. If you're running a SQL Server database and you're not sure how to handle all those different character sets, this is the place to be.
I know over the years I have harped on Microsoft's reluctance to invest fully in Web and software globalization (how come Google has 100+ language interfaces and Microsoft is stuck in the 40s). Oh, I know it's all about ROI and piracy and so on and so forth. But Microsoft of all companies can afford a few loss leaders; for what the company has lost on the Xbox in one year it could localize MS Office into 125 languages.
But I digress.
Despite our differences, I really do recommend this event (and they didn't pay me to say that). Microsoft has some truly top notch people working in their internationalization group and the company as a whole has done a great deal to advance the use of Unicode as the world's default character set.
Unfortunately, I'm not going to be there, but if you are, send me an update - or a PPT.
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+ TrackBacks (0) | Category: Events | Software Localization | Web Globalization
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