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Newsletter e-business Center PwC&IESE
ICT Impact Analysis on Organizations and Their Surrounding Environment

http://www.ebcenter.org
1-15 November, 2006
ZOOMING IN
Windows and Linux: Towards Interoperability
Commentary by Josep Valor, IESE professor
REPORT
Pay Television Will Lead the Spanish Leisure and Entertainment Sector in 2010
TREND HUNTER
Microsoft, Spanish Government Come to the Aid of SIMO
Marketing Via Bluetooth Knocks on Spanish Advertisers’ Doors
ITEMS OF INTEREST
e-Business Center Experts Make Themselves Heard
 
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ZOOMING IN
Windows and Linux: Towards Interoperability
The software giant from Redmond has sealed an important alliance with Novell, lasting until at least 2012. The goal is to improve interoperability between Novell’s Suse Linux, and Windows.
The two companies want to develop a virtual machine that can simultaneously run both systems on the same server.
Microsoft will pay Novell $240 million to use the SUSE Linux Enterprise Server subscription certificates, giving usage, resale and distribution rights to the company.
Additionally, the two companies will promote the use of one another’s products; over the next five years, Microsoft will invest $60 million in marketing campaigns, and another $34 million to increase the sales force.
The agreement also rules out possible patent infringement lawsuits between the two companies. To this end, Microsoft will pay Novell around $108 million. Meanwhile, Novell will pay Microsoft at least $40 million, although the amount will vary according to the revenues that Novell sees from the sales of Linux and its Open Enterprise Server products.
Commentary by Josep Valor, IESE professor

After years of grumbling about open-source software, the software giant from Redmond has consented to facilitating the coexistence of its Windows operating system with SUSE Linux, the Linux system distributed by Novell. ¿What consequences could this decision have for Microsoft?

Full Story (PDF, 20 Kb)

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REPORT
Pay Television Will Lead the Spanish Leisure and Entertainment Sector in 2010

Title: Global Entertainment & Media Outlook 2006-2010
Source: PricewaterhouseCoopers (PwC)
Date: October 17, 2006
Abstract: The global leisure and entertainment market will reach $1.8 billion by 2010 and experience a year-on-year growth of 6.6 %.
Digital and mobile distribution of content that promote the spread of broadband infrastructures and the rise of wireless technologies will become one of the pillars of the sector in the coming years. According to the study from PwC, the Asia-Pacific region will experience the most growth, with a 9.2 % year-on-year increase, although Latin America will also see significant growth (8.5%). In Spain, pay television, online casinos (games of chance) and conventional television will be the sectors with the best prospects for growth between 2006 and 2010.
Pay television will be at the forefront—experiencing an 18.4% annual increase through 2010—mainly to the development of broadband television (IPTV). According to the experts at PwC, by 2010 Spain will be the top IPTV market in Europe, with 3.5 million subscribers. The online gaming market will see an increase of 12.7%, thanks to the increased value of online games of chance. Spain will become the fourth largest market of the EMEA region, behind Great Britain, Germany and France. Worldwide, the videogame sector will grow 11.4% to generate revenues of $46.462 billion.

Full Story (In Spanish)

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TREND HUNTER
Microsoft, Spanish Government Come to the Aid of SIMO

The European presentation of the professional versions of Microsoft’s Windows Vista operating system and 2007 Office System suite, has put the spotlight on the current edition of the information technology fair, which is taking place in Madrid this month.
Important support for the 46th edition of SIMO has also come from Plan Avanza, a program promoted by the Spanish Ministry of Industry, Tourism and Commerce, and the participation of several autonomous communities along with a handful of large companies, including Apple, Toshiba, Telefónica, Orange and Adobe, as well as Microsoft.
In general, trade fairs featuring computer products and services are going through a bit of a crisis worldwide due to a variety of factors. Manufacturers no longer wait for these events to launch their new products; customers and users have access to increasingly more quality technological information via Internet; and the drop in margins requires providers to prioritize their participation in sectorial fairs, where their potential customers gather. And the process of concentrating the ICT sector does the rest with the reduction in the number of large providers. Nevertheless, despite the progressive decline in number of exhibiters, SIMO 2006 has managed to increase its ability to draw in visitors, attracting a total of 288,000 this time around, according to the organization.

News in Navegante and Cinco Días
Article in El País
Pictures in El País

Marketing Via Bluetooth Knocks on Spanish Advertisers’ Doors

Nestlé, Coca-Cola and SEAT are just some of the brands that have gone with this formula to try and improve their brand recognition. The targets are especially the youngest members of the population, the ones most willing to participate in these types of campaigns. Helados Nestlé, for example, saw 35,000 downloads in one month after setting up a booth at a water park that allowed interested passersby the chance to download content related to its ice-cream products.
With its “On the Go” campaign, Coca-Cola used Smart cars equipped with Bluetooth to allow its users to download online games related to its brand in several cities throughout Spain, which had been considerably sucessful.
Notwithstanding, this advertising technique has some drawbacks. Advertisers need prior authorization from the users before they can download the content while trying not to overload the consumer with a barrage of messages. Furthermore, the vulnerability of wireless networks is harmful to this marketing technique. According to a report from the National Institute of Communication Technologies (INTECO), Bluetooth is the primary means of transmitting viruses to mobile phones. 
In return, this formula achieves response rates in the neighborhood of 15%, a percentage far superior to that of other methods, such as personalized email, whose success rate is just 2%. Experts feel that marketing via Bluetooth achieves greater brand recognition because it requires user intervention.

Article in Actualidad Ecónomica (premium service)
News in Marketing Directo and Terra
Report from INTECO

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ITEMS OF INTEREST
e-Business Center Experts Make Themselves Heard

The comments published biweekly by the experts of IESE and PwC can be heard via streaming audio on the Center’s website. Additionally, every other Tuesday there will be a live broadcast at 19:00 on Radio Intereconomía Cataluña, 98.1 FM, on the program La Gran Vía.

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