Bonum Certa Men Certa

Cablegate: “42 Percent of Argentine Firms Use Linux on at Least Some of Their Computers”

Cablegate



Summary: In a cable marked "sensitive", US diplomats look at the digital state which Argentina is in

TECHRIGHTS covered Argentina several times over the years. Argentina, being a south American nation, has been quite GNU/Linux-friendly. Here are some posts that may be relevant to today's Cablegate cable on "BRIDGING ARGENTINA'S DIGITAL DIVIDE":





According to the following cable (€¶11), "Linux is popular in Argentina due to its low cost, and 42 percent of Argentine firms use Linux on at least some of their computers." Here is the cable in full:








ZCZCXRO9151 RR RUEHRG DE RUEHBU #0748/01 0901858 ZNR UUUUU ZZH R 311858Z MAR 06 FM AMEMBASSY BUENOS AIRES TO RUEHC/SECSTATE WASHDC 4016 INFO RUEHAC/AMEMBASSY ASUNCION 5452 RUEHBR/AMEMBASSY BRASILIA 5254 RUEHCV/AMEMBASSY CARACAS 0887 RUEHLP/AMEMBASSY LA PAZ 4068 RUEHMN/AMEMBASSY MONTEVIDEO 5453 RUEHSG/AMEMBASSY SANTIAGO 5058 RUEHSJ/AMEMBASSY SAN JOSE 0428 RUEHRG/AMCONSUL RECIFE 0137 RUEHRI/AMCONSUL RIO DE JANEIRO 1940 RUEHSO/AMCONSUL SAO PAULO 2842 RUEATRS/DEPT OF TREASURY WASHDC RUCPDOC/USDOC WASHDC RHEBAAA/USDOE WASHDC RHMFISS/HQ USSOUTHCOM MIAMI FL

UNCLAS SECTION 01 OF 03 BUENOS AIRES 000748 SIPDIS SENSITIVE SIPDIS SOUTHCOM FOR POLAD AND J5 FOR JUAN RENTA USDOC FOR 4322/MAC/OLAC/BASTIAN/PEACHER E.O. 12958: N/A TAGS: ECON [Economic Conditions], EIND [Industry and Manufacturing], AR [Argentina] SUBJECT: BRIDGING ARGENTINA'S DIGITAL DIVIDE €¶1. (U) Sensitive but unclassified. Not for Internet distribution. ------- Summary ------- €¶2. (U) Argentina's IT industry is the third largest in Latin America. Argentina's IT industry enjoys many advantages and is growing quickly. IT companies expect continued rapid growth and are investing heavily in Argentina. There has been a boom in the number of small U.S. hardware and software companies in Argentina in the past two years. The growth in Argentina's IT industry has left many Argentines behind. The GOA has instituted a number of projects with mixed results to combat this digital divide. Private companies are also sponsoring programs to bridge the digital divide, and strong competition in both the hardware and software sectors is driving prices down. The private sector will likely prove more able than the GOA to bridge Argentina's digital divide. End summary. -------- Overview -------- €¶3. (SBU) Argentina's IT industry is the third largest in Latin America. Total IT production amounted to USD 1.3 billion in 2005, of which USD 250 million were exports. The IT industry is responsible for one percent of Argentine GDP, and employs over 48,000 Argentines, or 1.44 percent of the total labor force. The largest IT consumers within Argentina are the financial, government, telecom, oil, and manufacturing industries. IBM, which is the largest IT company in Argentina in terms of both sales and employment, has 3,500 Argentine employees. IBM and EDS provide services to many Latin American clients from Argentina. Intel will soon begin its first production in South America with a software development facility in Cordoba. Microsoft maintains a presence in Argentina only for public relations and marketing purposes. Smaller domestic and foreign firms produce software, hardware, and services for mostly local clients. ------------ Rapid Growth ------------ €¶4. (U) Argentina's IT industry enjoys many advantages. Argentine workers are comparatively well educated. Since the 2002 devaluation of the peso, Argentine skilled labor has been competitively priced. The relatively large domestic market allows firms to gain experience in the local market before exporting, while the predominance of the Spanish language gives Argentine companies access to important export markets. €¶5. (U) Argentina's IT sector is growing quickly. IT grew 29.3 percent in 2005, roughly triple the rate of the Argentine economy as a whole, and generated 20,000 new jobs. Domestic and export sales contributed equally to this growth as exports increased 30 percent in 2005. Revenues from hardware grew 37.6 percent, while revenues from software grew 22 percent and revenues from services grew 20 percent in 2005. €¶6. (SBU) IT companies expect continued rapid growth and are investing heavily in Argentina. IBM added 750 employees in 2005 and expects to add 500 employees per year over the next four years. IBM would like to double this number of new employees, but it is limited by the number of qualified graduates, its ability to develop new managers to supervise these new employees, and available office space. IBM is currently looking for a local company to build and lease a BUENOS AIR 00000748 002 OF 003 large new office building to house its new employees. Intel recently began work on a multimillion-dollar facility in Cordoba for 450 employees. ---------------------------------------- Explosive Growth of Small U.S. Companies ---------------------------------------- €¶7. (U) There has been a boom in the number of small U.S. hardware and software companies in the Buenos Aires neighborhoods of Palermo, Palermo Chico and Palermo Hollywood during the past two years, according to industry sources. Most of the firms are subsidiaries of U.S. companies that are based in Silicon Valley, California, Austin, Texas, and Raleigh, North Carolina. They generally employ 50 to 100 people and maintain a relatively low profile. This expansion is also being felt in the provinces. For example, a government official in the province of Salta recently told the Economic Counselor about a former Argentine employee of a U.S. software company who now operates a company in Salta providing software for U.S. companies. This is one of several such companies in that province. U.S. firms move operations or outsource to Argentina to take advantage of Argentina's relatively high educational levels and low labor costs. -------------- Digital Divide -------------- €¶8. (U) The rapid growth in Argentina's IT industry has left many Argentines behind. The population of Internet users grew 40 percent in 2005, but computer use in Argentina is still limited to the middle and upper classes. Only ten million Argentines, or roughly a fourth of the population, have regular access to the Internet. The vast majority of these computer users are concentrated in the nation's largest cities, according to a survey by Microsoft. Approximately 20 percent of the population does not have an equal opportunity to access the Internet because broadband has not reached their poorer neighborhoods. €¶9. (U) The GOA has instituted a number of projects with mixed results to combat this digital divide. Argentina's Ministry of Education together with the Massachusetts Institute of Technology launched "One Laptop Per Child" in 2005. This program intends to distribute between 500,000 and 1 million low-cost laptops to poor children in Argentina. Another Ministry of Education plan launched in 2005 intends to distribute 100,000 computers to 12,000 schools. The GOA also partly revived a plan to establish Community Technological Centers (CTCs) after abandoning it during the recession of 1999-2002. There are now 1,350 CTCs in Argentina. A lack of funding and training hampers these programs, according to the director of the Argentine Telework Association and the director of projects for the educ.ar program. An estimated 71 percent of Argentine educators have never used the Internet, and only 3 percent of Argentine Internet users regularly access the Internet from an educational institution. By contrast, 60 percent of Internet users go online in cybercafs, 41 percent go online at home, and 14 percent go online at work, with many having more than one mode of Internet access. €¶10. (U) Private companies are also sponsoring programs to bridge the digital divide. The "My PC Program," jointly funded by 40 mostly Argentine firms, is designed to bridge the digital divide by providing low-cost PCs to the nation's poor. Seven of the eight largest supporters are U.S. firms, including Intel, Microsoft, and HP. The eighth firm is South Korean. The program sold more than 20,000 PCs for approximately USD 800 per unit in April 2005. Other programs, such as Intel's "Quality in Teaching" program and BUENOS AIR 00000748 003 OF 003 Microsoft's "Alliance for Education Program" are also bringing Internet access to the nation's poor. €¶11. (U) Strong competition in both the hardware and software sectors is driving prices down. The hardware market in Argentina is extremely competitive and offers low profit margins. The number of PC manufacturers with sales and service networks in Argentina has increased from four to 17 in recent years. The software market is also competitive. Linux is popular in Argentina due to its low cost, and 42 percent of Argentine firms use Linux on at least some of their computers. Microsoft released a Spanish- language Windows XP "starter edition" to compete with Linux, further reducing the cost of a new Internet-ready PC. The impact of this competition is clear. Sales of PCs for home use increased 93 percent to reach over one million units in 2005. ------- Comment ------- €¶12. (U) The results of GOA programs to bridge the digital divide have so far been disappointing. The private sector will likely prove more successful in this area. End Comment. €¶13. (U) To see more Buenos Aires reporting, visit our classified website at: http://www.state.sgov.gov/p/wha/buenosaires







A 2009 survey in Italy showed that OpenOffice.org usage in the country is 50% among companies, with GNU/Linux at 63%. Just how understated is the impact of Free software as viewed from the States? A lot of the English-speaking news comes from there, pushing aside other claims and measurements, thus establishing a biased consensus.

Comments

Recent Techrights' Posts

European Patent Office (EPO) Series: The Centre (in Portugal) Falls Apart…
Luís Montenegro became embroiled in a conflict-of-interest controversy
Links 10/06/2026: More Microsoft Layoffs, Sweden to "Ban Mobile Phones in Schools"
Links for the day
 
SLAPP Censorship - Part 103 Out of 200: Telling People What They Know and Don't Know About Death Threats They Receive
patronising letters sent on behalf of the Serial Strangler from Microsoft
IBM Genies in the Bottle
for ordinary people working who at at IBM, it's not hard to see that IBM is floundering
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, June 10, 2026
IRC logs for Wednesday, June 10, 2026
Links 11/06/2026: LF Openwashing of Slop and "Azerbaijan Bans TikTok and Other Social Media Apps in School"
Links for the day
IBM Lost About 18% of Its "Market Value" This Month
In IBM's case, a lot of the latest "pump" was Arvind's "quantum" hype/fantasy
Gemini Links 10/06/2026: Signal to Noise, Cancer, and Permacomputing
Links for the day
Communities and "Prosumers."
today's meetup will be about community
Gemini and Gopher Links 10/06/2026: Roasting, Changes, and Harms of Slop
Links for the day
Microsoft Azure Shrinking With More Mass Layoffs
"Reports suggest the layoffs will impact close to 200 out of 400 workers, who are set to cease employment at Azure on July 6"
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, June 09, 2026
IRC logs for Tuesday, June 09, 2026
European Patent Office (EPO) Series: The Centre-Right "Social Democratic Party" in Portugal
Quite an achievement for a former Maoist radical and aspiring champion of the Portuguese proletariat to be invited to join Goldman Sachs
SLAPP Censorship - Part 102 Out of 200: Maybe One Day Whistleblowers From Brett Wilson LLP Will Tell Us What Really Happened
Maybe one day some former staff of Brett Wilson LLP will also approach us to blow the whistle
What LibreOffice and TDF Get Right About Document Formats (and What They Get Wrong)
OOXML is a phantom - it is something nobody implements, not even Microsoft!
Gemini Links 09/06/2026: "The Mist of the Lands Between", Board Game Concept
Links for the day
2026: The Year Slop Companies "Made an Exit" (Threw in the Towel Over to Wall Street)
Remember 2026 as the year two major slop companies (which we won't name) sought an IPO
Links 09/06/2026: NSO Group still cracking, "FOI tribunal throws out £14k costs claim against journalist Barnie Choudhury"
Links for the day
Links 09/06/2026: "Smartphones Broke Dating" and "EU Open Source Strategy"
Links for the day
Cannot Speak About IBM Wrongdoing or Jobs Being Sent Overseas (Lower Salaries)
IBM has long attacked the media, the whistleblowers, and even online forums
European Patent Office (EPO) Series: The CIA-Funded Centre-Left in Portugal
In the political turmoil which followed the fall of the old regime, the communists seemed to be acquiring a dominant position and there was a very real risk that Portugal could end up aligned with the Eastern Bloc if they were not stopped
This Coming Friday
Richard Stallman (RMS)
Yesterday Afternoon The Register MS Published a Fake Article That Says "AI" 31 Times Because It Got Paid to Do This
What will happen when all those loans for slop (Ponzi scheme) stop and companies' marketing budgets - which include media bribes for hype campaigns - are no more?
Extraordinary General Meeting of Staff Union of the European Patent Office Ahead of Intensifying Strikes
We will, in the meantime, run a series about EPO corruption, which is now connected to corruption in Portugal and to corruption inside the EU
Several Slopfarms That Target "Linux" Seem to Have Died
Or perished severely
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, June 08, 2026
IRC logs for Monday, June 08, 2026
Gemini Links 09/06/2026: Tanana River, Cassette Beasts, and Emacs
Links for the day