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The backbone of the future economy

Cloud computing and virtualization reflect a new economic trend driven by the Web i.e., a shift towards a more service-driven economy.
Hong Kong S.A.R, Hong Kong S.A.R, China ( 21/09/2011
Cloud computing and virtualization reflect a new economic trend driven by the Web i.e., a shift towards a more service-driven economy. Revenue from the large range of content and services available from the Internet is rapidly increasing globally; travel, gambling, adult content, music, social networking, ecommerce and health services are particularly popular and flourishing web economy trends. In US, the economic trend of the web has gained so much momentum in the past, that according to the Yankee group, the US online advertising market will reach $50.3 billion in revenue by 2011, more than doubling 2007 levels and growing 24% annually (CAGR).

According to the sources, after contracting by 3.1% in 2009, US retail e-commerce sales- excluding travel, digital downloads and event tickets will grow by 2.2% by the end of the year 2010, to $135.2 bn. This business of e-commerce will have a huge influence on the economic trends of US. It has been said that Pent-up demand will boost sales further in 2011, with growth pealing at 11% a year later. Another research consultant predicts online sales will grab an increasing share of total retail spending in the US, rising to 8% by the end of 2010 from 6% three years earlier.

The emergence of the next generation of Internet technology and applications has led to the coining of the term Web 2.0, to indicate that the Internet now has more capabilities than ever before. The Internet Media companies such as Google, News Corp and Yahoo are some of the leaders taking advantage of this with the introduction of new services and applications. This revival of the Internet has also led in part to the re-emergence of the Internet economic trend, and more specifically e-commerce.

During the World Economic Forum in Davos, Switzerland, Microsoft Chairman and CEO Bill Gates spoke about the role of information technology. Gates pointed out that the growing use of the Internet in the office and at home is not just a U.S. phenomenon but, the European trends are just as impressive. This means that the economic trends of not only US, but of the other countries are also affected by the use of internet. He said "This is a great example of an innovative partnership between government and business that helps close the local skills gap and makes information more accessible to a broader range of people". He praised the French liberalization of encryption controls, noting that Europe is far ahead of the United States in this area.

The online gaming industry has a tremendous impact on the economic trend of web technology. The top gaming sites in China are generating registered players in the millions and upwards of 500,000 co-current players. Research shows that Chinese gamers had spent 1.7 billion dollars on games in 2001, a staggering amount that is expected to reach a figure of 6 billion in 2012. That is the spectacular annual growth of 29%.

Mobile ecommerce has also proved successful in various countries and is an influencing factor in the world’s economic trends. In US, the Coda Research Consultancy forecasts that mobile e-commerce revenues in the US will reach $23.8bn in 2015. This is a compound annual growth rate of +65% over 2009. This means that the economic trend in this case is favorable.

Web economy has become the major part of GDP of the whole world and has created a niche for itself. The sources say that in future the web technology will become the back bone of the world economy and be the main influencing factor of the world’s economic trends.


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