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Spanish ICT Hypersector Stagnating
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Title: Informe Anual del Hipersector TIC, 2008
Source: AETIC
Date: April 2009
Abstract: The Spanish ICT market had a turnover of 102.668 billion euros, flat growth with respect to 2007. It was Spain's R&D leader, with an increase of 8% and a total of 2,351 million euros, along with a 3% growth in exports, reaching 6.456 billion euros and reducing part of its considerable deficit, which sits at 20.247 billion euros. Standouts in the so-called ICT "hypersector" in terms of volume include telecommunications services, which fell 1%; information technology, which grew 4% thanks to breakthroughs in both software and services and offset the drop-off in hardware sales. Other key sectors include telecommunications, which was down 10%, and consumer electronics, which fell sharply by 15%. Thus, 2008 will not go down in history as a year of ICT expansion in Spain, but rather one that marked the end of a long cycle of sustained growth that was interrupted only in 1992. Nevertheless, as AETIC's spokespeople noted, the ICT hypersector did not destroy employment. In fact, it saw a slight gain, with 356,000 employees in late 2008. It certainly could have been worse.
Read more (PDF, 952 Kb) (spanish)
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Spain's Digital Content Industry Up 2% in 2008
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Title: Los contenidos digitales en España, 2008 Source: AETIC Date: May 2009 Abstract: Our newsletter from the second half of February featured a review of the White Book on Digital Content in Spain published by Red.es. Those interested in this field may now complement that with a new study published by the employers' association AETIC, which emphasizes the economic repercussions of this activity. Among other information, it reveals that the digital content industry in Spain saw a turnover of 10.362 billion euros in 2008, which equates to a 2% year-on-year gain and represents 0.94% of the country's GDP. Meanwhile, Spanish digital content exports were up as imports fell, constituting a boost for its trade balance, which presently sits at -2.779 billion euros.
The number of employees also rose, with 41,563 reported in 2008 (up 5% from 2007), the majority of which (60%) pertained to the audiovisual services subsector (TV and Radio). Also notable was the growth of online content (27%) and the revenues from music downloads, which jumped from five million euros to the current total of 11 million. As for research and development (R&D), investment from the Spanish digital content industry reached 105 million euros in 2008, which equates to 1% of revenues. The study also highlights a 24% decline in revenues for digital publications, "fundamentally due to the reduced number of titles published in this format." The waning revenues also affected a variety of subsectors, including: film and video, movie sales and rentals, and music.
Read more (PDF, 150 Kb) (spanish)
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Optical Discs Reloading
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The makers of optical discs continue their quest to expand the capacity and lower the cost of digital storage. General Electric (GE) has announced the development of a new format that can hold 500 GB. These new high-capacity discs utilize microholographic technology and are the same size as standard optical discs, which means that players capable of reading and writing on them will also work with CDs, DVDs and Blu-ray discs. They were developed at GE labs over the course of six years and some sources say they could hit the market by 2012.
Equivalent to 100 DVDs, they are ideal for professional, scientific and audiovisual applications that require large storage capacity. And if the manufacturers can make them affordable enough, they could also be released for the consumer market, for such uses as saving high-definition audiovisual content. "This could be the next generation of low-cost storage," said analyst Richard Doherty in The New York Times.
The progression from CD to DVD, with its 5 GB, and from there to Blu-ray, with its 25 or 50 GB, has been notable. Nevertheless, hard disks seem to be winning the race as digital storage media thanks to their spectacular growth in capacity, their speed and their plummeting prices. A 1-terabyte (1,000 GB) internal hard drive can be had for as little as 100-150 euros.
So, while Blu-ray still struggles to find its place, this breakthrough could give new momentum to the optical disc. And much more so if the efforts of GE's developers pay off and they end up reaching the milestone of 1 TB per-disc. Articles in New York Times, La Repubblica (italian), and Le Nouvel Observateur (french)
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Crisis Increasing the Risk of IT Failure
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Concerns about software quality have long been a recurring theme. There are specialized forums (such as the renowned site maintained by Peter Neumann, a noted expert in computer-related risks) as well as periodic, heated debates on the topic. In principle, professionals agree about the need for carrying out exhaustive quality-control procedures, especially in critical environments, but when it comes to finding solutions, their points of view start to vary. Manufacturers insist that quality costs money and that the customers seem to forget this, whereas the latter become annoyed when problems in the code cause a disruption for their business. Amidst the crossfire, professional ICT organizations seek a middle ground in hopes of reconciling the two sides. But progress is being halted by the current economic crisis and resulting IT budget cuts, which add to the risk of failures.
According to a study by the Chartered Management Institute and the UK government citing the Financial Times (FT), 40% of British companies in 2008 reported some type of disruptive incident with their IT systems, whereas in 2002 that percentage was just 19%. According to FT, this progression can be extrapolated to the rest of the developed countries. In Spain, the magazine CIO España last year cited a study by the IT tech association ATI that revealed the "minimal interest shown by Spanish IT companies in this aspect, which is fundamental for business." One of its authors, Luis Fernández Sanz, a university professor and organizer of the conference "Jornadas sobre Innovación y Calidad del Software," taking place this year at the University of Alcalá de Henares, "believes that the repercussions of the downturn on technology have made it necessary to establish a set of priorities, focusing on regulations and standards on quality and security in order to meet objectives and protect company assets." Similarly, the EU wants software makers to offer guarantees to the consumer on any physical product, a proposal that does not sit well with the BSA, according to a report by ZDNet. Articles in Financial Times, ZDNet, and CIO España (spanish)
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INFORMATION OF INTEREST
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The views expressed in this newsletter are the responsibility of their authors.
Copyright 2009 e-business Center PricewaterhouseCoopers & IESE Business School.
Copyright 2009 e-Business Center PwC&IESE. All rights reserved. This document can be redistributed, retransmited or copied without modifying for any but commercial use. This copyright comment and the URL http://www.ebcenter.org. must be included at all times.
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