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It’s contribution
The Internet and GDP Impact
www.datacenterdynamics.com
is greater than
energy, agriculture,
Mining …
Derek WebsterGlobal Data Centre Strategy,
Development & Solutions
� Every 8th couple has met through the Internet.
� First website & server: 1991 published by Tim Berbers Lee (UK) at CERN
� 4,200 new domain names registered per hour. 37 million per year.
World Wide Wow… a social perspective
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� 100 years ago a person could master no more than 50 books in a lifetime.
Today, a person is able to absorb information from 600,000 books (!) …
� Average (western) “digital birth” (child’s 1st online presence) approx 6
months old i.e. parents email pictures of new baby and posts online.
� 69 % of children aged 2 to 5 use a computer mouse. More young people
can play a computer game (58 %) than swim (20 %) or ride a bike (52 %).
The Internet and GDP impact
The Area of …
1 Trillion pages = 37,400 km2 (23,300 m2)
How BIG is the Internet ...?
Kuwait
It looks like this
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It looks like thisConsumes
170 to 307 GW
Source : Berkley University
Size and traffic is the weight of a
The Internet and GDP impact
Most Trafficked Websites
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Websites
The Internet and GDP impact
Chinese sites not shown ?
i.e. Beiau, Weibo …
How BIG in an Internet Minute...?
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and Growing … The Internet and GDP impact
Macro Internet Numbers ... enterprise
� If the Internet was a Country = global top 5… and growing faster than
� Global: 2.4 Billion people connected to the Internet (3 bn by 2016)
� $8 Trillion e-commerce transactions in 2011
� Internet = 2.9% of Global GDP ($1.7 Trillion)
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� Internet = 2.9% of Global GDP ($1.7 Trillion)
�3.4% of GDP (of 13 larger economies) that = 70% of global GDP
� 565 million internet users in China, world #1 (more than Europe combined)
� Internet GDP = Sweden 7.7% & UK 7.4 – 8.3%
�Mature countries growth over last 15 years = 10% internet related
The Internet and GDP impact
Internet 3.4% of GDP … so what ? Source: OECD 2009
Sector % Contribution of Total GDP
www.datacenterdynamics.com The Internet and GDP impact%
Internet 3.4% GDP (2009 - 13 countries) Source: McKinsey
www.datacenterdynamics.com The Internet and GDP impact
� A sharp acceleration from the 10% contribution over 15 years.
� Most economic value created by the Internet falls outside of the
technology sector. 75% of the benefits are captured by more
traditional industries.
Internet : 21% GDP Growth in Developed Countries
in Last 5 Years
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� United States = largest player in the global Internet supply
ecosystem, capturing 30% + of global Internet revenues and more
than 40% of net income. Their global ecosystem has relatively equal
contributions from hardware, software, services and telecoms.
Internet Maturity = Opportunity
The Internet and GDP impact
Internet Economy: G-20 GDP = 4.1% Source: ECU,OECD, BCG 2011
www.datacenterdynamics.com The Internet and GDP impact
� Internet £120 bn (2012) of UK GDP or 8.3% 2012 (= 2x G-20 ave.)
- Projected £219 bn (2016) = faster than the rest of UK economy to 12.4% GDP
� McKinsey : Internet contributed 23% to GDP growth, past 5 years
� “UK investing more than European rivals - digital infrastructure” LSE
UK – Spotlight
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� “UK investing more than European rivals - digital infrastructure” LSE
� 10% of Internet users consume 50% of all data transmitted
� 10th most Advanced ICT nation (ITU Information Society 2012)
� 7th WEF Network Readiness index 2013
The Internet and GDP impact
Financial Services = only 14.5% UK’s GDP
UK $ GDP – Spotlight
GDP $ 2.44 trillion 6th rank (nom) * Internet : 7.4 – 8.3% of GDP
Agriculture : 0.7% FDI Stock: $1.32tr in 3rd $1.8tr out 2nd
Industry : 21.1% * Ease of doing Business = 7th Rank
Services : 78.2% * Credit Rating: AA1 Outlook: Stable to -
GDP per capita = $ 38,589 (23rd rank) External dept. $9.8 tr 2nd or 390%GDP
GDP 2013 growth 1.5% y/y ( 2012 0.2%) France $5.6 tr 3rd or 182% GDP
www.datacenterdynamics.com The Internet and GDP impact
UK = worlds most Internet-dependent economy
GDP 2013 growth 1.5% y/y ( 2012 0.2%) France $5.6 tr 3rd or 182% GDP
Internet Use - Worldwide Growth
Worldwide
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2012 Internet users: almost 200% growth the numbers in 5 year
The Internet and GDP impact
Global IP - Growth 4 x 2010-15 Source: CISCO 2011
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Mobile Data – Connected Devices Growth
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Internet – Connected Devices Growth (M2M)
www.datacenterdynamics.com The Internet and GDP impact
defsff
June 30, 2012
World RegionsPopulation( 2012 Est.)
Internet UsersDec. 31, 2000
Internet UsersLatest Data
Penetration(% Pop)
Growth2000-2012
% Users
Africa 1,073,380,925 4,514,400 167,335,676 15.6 % 3,606.7 % 7.0 %
Asia 3,922,066,987 114,304,000 1,076,681,059 27.5 % 841.9 % 44.8 %
Worldwide Internet Users and Population
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Europe 820,918,446 105,096,093 518,512,109 63.2 % 393.4 % 21.5 %
Middle East 223,608,203 3,284,800 90,000,455 40.2 % 2,639.9 % 3.7 %
North America 348,280,154 108,096,800 273,785,413 78.6 % 153.3 % 11.4 %
Latin AmericaCaribbean
593,688,638 18,068,919 254,915,745 42.9 % 1,310.8 % 10.6 %
Oceania Australia 35,903,569 7,620,480 24,287,919 67.6 % 218.7 % 1.0 %
WORLD TOTAL
7,017,846,922 360,985,492 2,405,518,376 34.3 % 566.4 % 100.0 %
The Internet and GDP impact
Share of Internet Population Growth : 2007 – 2012
www.datacenterdynamics.com The Internet and GDP impact
Cloud - Worldwide Growth & Region
Worldwide Cloud
Traffic Growth
Cloud Innovation Needs Fast Broadband
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%Source: Gartner
Cloud Usage
By Region
The Internet and GDP impact
Internet : GDP Growth % Aspiring Countries Source: Gartner, OECD, WHO, ICD 2010
www.datacenterdynamics.com The Internet and GDP impact
Internet Maturity (broadband penetration) and GDP Growth
�“ Internet penetration has a positive impact on economic growth”.(Myongji University South Korea after examining 207 countries)
�“A clear path can be found from introducing broadband and its
increased penetration to per capita GDP”. (University of Munich 2009)
�
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�Every 10% increase in broad band penetration adds 0.9 to 1.5% to
per capita GDP growth. (World Bank)
Internet = Ave $500 increase per capita GDP over the last 15 years.
The Industrial revolution took 50 years
The Internet and GDP impact
Internet Supply ecosystem impact Source: McKinsey ecosystem index
Internet Contributionto GDP %
www.datacenterdynamics.com The Internet and GDP impact
< McKinsey ecosystem index >
�USA = 30% of global internet revenue: most developed ‘supply
ecosystem’ = 40% of world ICT profits
�Venture capital deals: USA = 20% of total Investment (numbers and investment)
�Keep costs down
Internet investments Numbers …
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�Keep costs down
o Access a broader range of supplier access
o Target Marketing : 15% marketing spending = online marketing.
�Broadband break-even Typical in-ground infrastructure:
o4 years = Urban
o8 years = Suburban
o15 years = Rural
The Internet and GDP impact
Next Generation Broadband Network (NGN)
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USA: Levin - National Broadband Plan to Generate 1,000% ROI
“We spent $20 million on the plan and Congress [says] the incentive auction is worth $22 billion,” said Levin. “That’s a thousand-to-one return on investment and it’s better than Goldman will do on the Facebook IPO.” … March 2012
Return on Investments (ROI) Some examples
Cost-benefit-ratio comparison:
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Malaysia: Broadband Cost-benefit-ratio:
Invest MYR 2.4 billion ($800 m)
GDP Impact = +1% and helps Bridge the digital divide
Create 135,000 jobs (2010)
The Internet and GDP impact
Invest £5bn in Superfast Broadband and add £18bn to GDP and create 280,000 new jobs (indirect and indirectly) … LSE, Nesta 2012
UK broadband investment = £20 of benefit for £1 spent
Return on Investments more examples Source: intel
Brazil:
Broadband services increased employment growth rate by +1% - 1.4%
Latin America/Caribbean:
10% rise in broadband penetration yields +1.7% in GDP growth.
China:
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China:
Every 10% increase in dial-up & broadband penetration contributes up to 2.5% to GDP growth.
Thailand:
Broadband could account for approx: 1% of the GDP growth rate.
Broadband ‘Investment’ Services spur economic growth …
Internet G-20 GDP % projection to 2016Source: ECU,OECD, BCG
www.datacenterdynamics.com
Investment opportunities…?
The Internet and GDP impact
GDP Forward look Projection Source: World bank and PwC
2011 2030 2050
MER GDP US $ bn GDP US $ bn GDP US $ bn
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� France over the last 15 years
500,000 jobs lost to 1,200,000 created (2.4 gained for 1 lost).
� Global view of SME’s is 2.6 gained for 1 lost.
� European Commission (EC) predicts in 4 years:
Internet and impact on Jobs
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� European Commission (EC) predicts in 4 years:
– Will create + 2,000,000 jobs
– Contribute € 636 billion to GDP growth
Companies that fully integrate/use technology create x 2 more jobs against a neutral /negative on companies using
it sparingly or not at all …
The Internet and GDP impact d.webster@andget.co.uk
Local GDP - Benefits of Hub Data Centre's
… well, this is what happened !
� Population growth 2005-07 +13%
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� 220 new Construction jobs
� Approx. $1.3bn Investment
� Salary growth 2005-07 +8%
� House prices 2005-08 +30%
Internet & ICT for the Global Good…
� United Nations: Internet penetration = key metric to reduce
poverty and encourage rational development.
� Smart 2020 Report: ICT Potential to reduce global emissions
(7.8 Gt by 2020) by 15%.
� ICT is part of the solution to climate change:
www.datacenterdynamics.com
� ICT is part of the solution to climate change:
• Transformative ICT solutions examples:-
o E-commerce : -1 bn tonnes CO2e
o Virtual meetings & remote working: -0.5 bn tonnes CO2e
o Smart Grid: -2 bn tonnes CO2e
o Smart Motors: - 0.97 bn tonnes CO2e
o Smart Buildings: -1.7 bn tonnes CO2e
o Smart Transportation: -1.52 bn tonnes CO2e
The Internet and GDP impact
Thank you ...
GDP Impact... do
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doGovernments
get it ??
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