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

IBM: The B Turns From "Business" to "Bailouts" to "Buybacks" ("IBM is the Next Intel")
Trying to shore up the falling share price/stocks while veteran workers and Vice President (with high salaries) are cut off
 
Links 31/05/2026: Watershed Moment, Traveller RPG Book Binding, and GUI Annoyances
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, May 30, 2026
IRC logs for Saturday, May 30, 2026
IBM CEO Can Become a Billionaire by Laying Off Tens of Thousands of Workers (or Buying Companies Using Borrowed Money, Only to Lay off Thousands in Them)
Like he did Confluent recently
Reminder That Linuxiac is a Slopfarm or Hybrid of Bobby and His LLMs
LLM fetishist that claims to cover Linux
BetaNews is Still Publishing Fake Articles, Sometimes Fake News, or LLM Slop Disguised as 'Journalism'
Slop isn't yet a thing of the past, but hopefully we'll get close to that by the end of this year
Gemini Links 30/05/2026: Writer's Block, Evil GAFAM (Google), and Scepticism of Slop
Links for the day
Links 30/05/2026: Fairphone 6, China’s Rise in Drug Development, Slop Wastes Money Without Delivering Value
Links for the day
Links 30/05/2026: Alarm Over Large Companies Cancelling Slop Contracts, Ozzy Osbourne Resurrection as Slop Draws Ire
Links for the day
Red Hat Exodus or RAs (or PIPs) in 2026 Not Limited to China, IBM is Doing Well at Hiding Layoffs
All we need to know is, does IBM hand out lots of PIPs?
SLAPP Censorship - Part 92 Out of 200: A Spouse Cannot be Turned "On" and "Off" Like a Faucet
Today's part will be very short because we keep the parts shorter in weekends and summer is officially around the corner (June on Monday)
The Register MS Has Just Published Fake Article That Mentions "AI" 23 Times. "Sponsored by Arm." It Does This Every Day.
A lot of the time we see this term everywhere in "the news" simply because slop pushers are paying for it
SQLite Under DDoS Attack by Slop Reports or Fake 'Bugs' (Just Like cURL and Many Other Projects)
Even Linus Torvalds is starting to talk about this
Links 30/05/2026: More GAFAM (Amazon) Mass Layoffs, Peter Schiff Warns of Trillion-Dollar Slop Bubble Waiting to Implode
Links for the day
Slop is Plagiarism
Trillions of dollars down the drain, invested in a dud
Gemini Links 30/05/2026: Rehabilitation and Taming Emacs Cache and Temporary Files
Links for the day
Richard Stallman (RMS) Talks and Secure Transmission of Private Communications in Formats Everybody Can Access With Free Software
Maybe the FSF should step up a bit the campaign to use Free software to communicate with one another
General Consultative Committee (GCC) Discusses Working Conditions of Employees of the European Patent Office (EPO)
On the agenda: Salary Erosion Procedure, Breastfeeding Policy, New Amicale Framework, Public Holidays 2027
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, May 29, 2026
IRC logs for Friday, May 29, 2026
It's Friday Night Again, So Microsoft is Again Shelving (Under Weekend Lull) Nightmare News for XBox Staff
It did the same thing when the chiefs of XBox got canned
Links 29/05/2026: "Spyware Economy" and Cuba's Energy Crisis
Links for the day
Gemini Links 29/05/2026: Rap Rant and LLMs Criticised
Links for the day
Akira Urushibata on Misleading Numbers From Anthropic's Project Glasswing (False Marketing by FUD Tactics)
Posted yesterday and approved a short while ago
Censorship of Information Unflattering to IBM (or GAFAM)
Years ago we gave a platform to a censored Microsoft whistleblower
Silent Layoffs at Microsoft in 2026
Time will tell is there are investigative journalists out there who will quit parroting Microsoft (e.g. false layoff figures) and relying on LLMs controlled by Microsoft to spew out false "facts" for them
SLAPP Censorship - Part 91 Out of 200: Legal Aid in Support of Freedom of the Press and British Women (Attacked by Americans)
bolstered by prominent counsels
Codecs and Software Patents - Part XII - GNU's Web Site Will Soon Have Many Recent Talks by Chief GNUisance Richard Stallman (RMS)
GNU videos being transcoded or converted into AV1
[Video] Richard Stallman's Rapperswil (Switzerland) Talk Online
accessible without proprietary software
Trusting Trust is an Old Issue, Predating Rust and LLM Slop by Over Half a Century
Microsoft Lunduke wants to make a case against Rust and slop (LLMs), but the issues he addresses aren't exactly new or unique
California Should Have Abandoned So-called 'Age‑Verification Laws', Not Make Exemptions (for Now)
This has nothing to do with 1) children 2) safety 3) safety of children
Links 29/05/2026: Cory Doctorow on Why the Internet Feels So Broken, American Pope on Defederation
Links for the day
Techrights Does Not Censor Information About IBM, It Platforms and Retains Suppressed Voices From Inside IBM
They don't like it when people criticise the management [...] panic attacks mentioned
Bob (Robert) Cringely Devoted Three Years of His Life Trying to Profit From LLM Slop and Now He Sounds Off, It's Just Not Working and It Can Crash the Economy Soon
"The labs raising money at valuations with too many zeros are happy"
Techrights After About 60,000 Articles in 20 Years
Sites fail if they don't offer anything new or if they wrongly believe that adopting slop to parrot other sites will give them exposure
Organised Plunder or Robbery: GAFAM and Hardware Companies Rely on Media Bribery to Perpetuate False Narratives and to "Drive Sales" (and Drive Prices Upwards)
The price-fixing seems plausible and, if so, we need to demand action
Linux Foundation Destroys the Identity and History of Linux
Groklaw's PJ was thorn on the side of LF sponsors
The Problem of Microsoft Crimes
Opposing crime isn't "hatred"
The Fall of Slop (Even Microsoft Admits There's a Problem)
If Microsoft admits that slop is too expensive and is for "entertainment purposes" because it cannot be relied upon, why would anyone other than the pushers and profiteers still insist that slop bears potential?
Red Hat Will Die Inside a Dying IBM
IBM isn't where Red Hat came to thrive but where it came to die
Very Large Strike at the European Patent Office Today, "Production" Sank a Huge Deal
At this pace, we might be looking at tens of thousands fewer European Patents being granted this year
Gemini Links 29/05/2026: Leadership and Religion, the Board Game (Second Edition)
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, May 28, 2026
IRC logs for Thursday, May 28, 2026