Economic development means different things to different people. It depends on their context. In my early work as a Peace Corps volunteer in Africa development meant bringing running water to villages. My town was the new recipient of a public water system from the Danish Aid Agency.
But broadly speaking, economic development initiatives are efforts to attract investment to a region. For most places, it’s not about running water but about creating jobs. And, some of the best jobs out there – in demand and high paying – are in technology or in software development more specifically. Software is the future. And, many cities, states and countries want to get in on the act. Yes, many of the software development jobs will go to product development shops but they need to hire from somewhere and government leadersare hoping to bring those jobs to their constituents.
A classic strategy for attracting investment to a region is to provide tax incentives. We’ll give you a break on your corporate taxes for a period of time if you bring your new headquarters or factory or research facility to our region. A quick search reveals many such programs. Apparently Texas is “wide open for business” and is willing to provide tax abatements and local incentives.
As the healthcare industry depends increasingly on software to drive the change to value-based care from transaction-based compensation, the future of global healthcare is increasingly bound to the technology that will deliver:
Integration solutions that will allow stakeholders to share information about populations and individuals across the ecosystem.
Cloud-based solutions that will allow services to reach scale without the need for the contemporary care system or health insurance vendor to grow infrastructure.
Branded medical services, such as oncology advice engines that allow a regional cancer specialist to deliver a better quality of care because she will have, for example, access to the most advanced protocols for her patients via smart software powered by companies such as IBM but with the built-in expertise of our great medical centers such as Memorial Sloan Kettering Cancer Center.
The Rise of consumer health repositories will work against info sharing in the eco-system - crossing the divide between protected data owned by covered entities, under various global privacy laws such as HIPAA, and consumer controled data subject to the corporate policy of various business entites such as Microsoft, Apple, Samsung, and others will remain dificualt and cumbersome.
Previously Microsoft tried to discourage customers from using virtual desktop infrastructure (VDI) on top of rival operating systems by applying complex licensing rules involving various TLAs such as RUR, VDA and CSL (which I’m not going to explain here, because they are, thankfully, no longer needed). The USL is far simpler - clear Windows licensing replacing translucent frosted glass, so to speak.
Telstra’s recent FY13 earnings announcement recorded a strong showing of its Network Application and Services (NAS) division, which saw a 17.7 per cent increase in revenue to A$1.5 billion from the previous year. Its international business delivered a combined Global Connectivity and NAS revenue of A$566 million, or a growth of 11.4 per cent from the previous year. Telstra also plans to continue to build out its NAS division, particularly in Asia.
What It Means
A beneficiary of the NAS investment is Telstra Global, nestled under its International division, offering network connectivity and services to enterprises in Asia. In my recent report, I argued that Telstra Global is a well-placed partner for medium-size to large companies in sectors like transportation and logistics, shipping, manufacturing, and professional services looking to expand their operations out from Hong Kong, Australia, and Singapore into Southeast Asia and China. While this looks rosy, there are areas that require closer attention:
The US Bureau of Economic Analysis released its preliminary report on second quarter 2013 US GDP, along with both major revisions to US economic data over the past 50 years, and minor revisions to the data on US business investment in information technology goods and services. Here are my key takeaways from the report, and its implications for the US tech market.
US real GDP growth in Q2 2013 came in better than expected. The 1.7% growth at an annual rate from Q1 2013 was in line with our projection of 1.9%, but better than what many economists had been forecasting. Growth rates in Q4 2012 and Q1 2013 were revised down to 0.1% and 1.1%, respectively, from the earlier 0.4% and 2.5%. These revisions indicate that the end of the payroll tax reductions, the higher tax rates for high-income people, and the Federal budget cuts from sequester did take a toll on economic growth, with government consumption declining in Q4 2012, Q1 2013, and Q2 2013, and business investment in factories and offices falling in Q1 2013. But consumer spending has been solid, with growth of 1.8% in Q2 2013, 2.3% in Q1 2013, and 1.7% in Q2 2013. Business investment in equipment, which softened to just 1.6% growth in Q1 2013, improved to 6.8% growth in Q2 2013. And housing continues to be a growth engine for the US economy, with double digit growth rates in residential investment in the past four quarters, and improving home prices boosting consumer confidence and spending.
“Hello, I’m J. P. Gownder, and I serve Infrastructure and Operations professionals!” That’s my new greeting to Forrester’s clients. (I borrowed – aka “stole” – this opening line from my excellent colleague, Laura Ramos, who recently rejoined the Forrester analyst ranks herself).
After eight years in a variety of roles at Forrester, I’ve joined the Infrastructure and Operations (I&O) team as a Vice President and Principal Analyst. I’ll be collaborating with analyst colleagues (please see below) on I&O’s forthcoming Workforce Enablement Playbook. I&O pros face the constant challenge of empowering their companies’ workers with devices and services to make them successful in their jobs… as well as navigating the growing challenge of employees who choose to bring their own technology to work instead.
More specifically, I’ll be researching at least five issues pertinent to I&O pros:
Business leaders have revenue growth first and foremost on their minds. On average, 70% of these business leaders place a high or critical priority on revenue growth, customer acquisition and retention, and addressing rising customer experience expectations for 2013. Our data suggests business leaders are 50% more likely to identify these as critical initiatives than they do margin improvement or reducing operating costs. Growth and customer experience improvement take business priority.
The 2013 New Year has begun with the removal from the global tech market outlook of one risk, that of the US economy going over the fiscal cliff. On New Year's day, the US House of Representatives followed the lead of the US Senate and passed a bill that extends existing tax rates for households with $450,000 or less in income, extends unemployment insurance benefits for 2 million Americans, and renews tax credits for child care, college tuition, and renewable energy production, as well as delaying for two months the automatic spending cuts. While it also allowed Social Security payroll taxes to rise by 2 percentage points — thereby raising the tax burden on poor and middle class people — and did not increase the federal debt ceiling or address entitlement spending, the last-minute compromise does mean that the US tech market no longer has to worry, for now, about big increases in taxes and cuts in spending pushing the US economy into recession.