LatinAmericanKnowledge

Hotels’ Wake-up Call: Illegal Downloads

2011-05-18T13:49:00.000-07:00

What’s as bad as bedbugs for hotels today? Like bedbugs, this threat is invisible when guests check in and the consequences may not be evident until long after the guest leaves. It’s extremely costly, with loss of revenue and legal costs. (Yes, it’s so nasty that lawyers are involved.) It’s a growing trend: video downloads on your network.

It started off innocently enough. Once upon a time, hotels had a nice revenue stream from pay-per-view films. Travelers who wanted to relax in their room had a few options: the regular TV programming, the book they may have brought, or splurge for a pay-per-view movie.

Then the internet revolution came about. Hotels began offering internet access in response to demands from business travelers and others who wanted to keep up with emails and their favorite websites. Then the availability of high quality video downloads and new devices with higher resolution began to change the game. Instead of paying for pay-per-view movies, guests could download videos for free on their own notebooks or iPads.

What does this mean for hotels? Colliers PFK Hospitality Research reports that hotel revenue from pay-per-view films has shrunk by 39%. Their study shows that in 2000, each hotel room would collect approximately $288 in pay-per-view revenue annually. Today, the average hotel room collects only $175 annually. The likely cause of this decline in revenue is the many alternatives found on the Internet for videos, gaming and other on-line entertainment.

Even more ruinous, many of these downloads are illegal downloads of copyright protected movies. Hollywood is becoming aggressive in pursuing perpetrators. Film producers are hiring law firms such as one known as The U.S. Copyright Group to issue subpoenas to internet service providers and get the names of individuals who downloaded these films. For hotels, that ISP address is under their name, and is their responsibility. Fines range from $1,500 to $2,900 or more per incident, or defendants could face even larger fines in court. While this type of tactic may not bear up under the scrutiny of higher jurisdictions or legal reviews, the risks remain the same, whether for an individual or a hotel management group: downloading of illegally-obtained copyrighted materials may be bad for your health and your wealth, if the lawyers have their way with you. (To see what one company is doing to offer hoteliers a sound solution go to: www.hotelpeertopeer.com)

Naturally, for hoteliers there’s the ongoing challenge of finding a way to provide the guest with good service, ample access to the Internet and still protect the institution from legal problems. Hotel IT administrators: this is your wake-up call. Make sure you are blocking illegal downloads on your network. Secure your network and sleep well at night: just don’t let the bed bugs bite.(that’s another worry for hoteliers, but not the topic of this post, by the way).

Thanks for reading, commenting and/or tweeting (www.Twitter.com/Smoothwall).

Opportunities Missed? The "Vision Thing" in Latin America

2010-11-09T12:00:00.000-08:00

I had the opportunity to speak with an executive for a major IT systems company headquartered in the USA recently about Latin America. It was a very professional and pleasant conversation, between two people who know the region, speak the major languages and understand how much progress the territory has experienced in the past few years (and decades). The result of our conversation? A bit of sadness, a bit of frustration and a lot of head-shaking as to "why?"

What caused these reactions? After all, this was a conversation about a well-established company that has major activities in the USA, Europe, Asia and other parts of the world. This is a leader in serving customers with sophisticated and complex technology services, and doing so with a great deal of excellence, commitment and long-term staying power. Well, the reality is that somehow, the company is nearly uninvolved in Latin America.

To be fair, the firm does have some projects in the region, and has bought into some existing operations in different parts of Latin America. Nonetheless, when a particular deal came along that would have opened up new capabilities, delivered a strong client portfolio and was to be had at an attractive price, involving two of the most vibrant economies in South America, the judgement was made by a CFO to "kill the deal". The reason? It was in Latin America, plain and simple.

While this discussion went on to other elements about why Latin America is such a strong regional opportunity for high-tech firms (and many others), it remained on my mind, causing just a bit of consternation. After some thought, it seemed apparent to this writer, that the company in question simply has a problem with the "vision thing" (to paraphrase a recent leader of the free world and a leader of a major computing company known by its initials). Latin America is just a "rounding error" in the total numbers generated by this particular IT company. It's not a vital piece of future business, nor is it an essential element in the strategic growth of the organization --- yet. Could that be ready for a change or will this reticence continue and multiple opportunities be missed?

Evidently, at present, they just don't seem to register the phenomenal growth, quarter-to-quarter going on in Brazil, the excellent economic security that has been re-established in Colombia, the strong growth in Peru, the stable, steady-eddy performance in Chile, and even the re-bound in Caribbean nations, and yes, Mexico, too has begun to recover from its dose of swine and economic flu in the past two years.

A key question then, is what is the "vision thing" and what does it take to make a business sit up and take notice of Latin America? Well that's perhaps a post for another time on this same blog, but suffice it to mention that based on my many years of experience in the region, there is a lot of business to be found, profits to be generated, and plenty of customers (and partners) who will commit deeply and for the long-term to your business just as soon as you show your seriousness, commitment, persistence and willingness to work with the "locals". It's a matter of seeing the forest and the trees, or perhaps better said, having "vision" and being willing to use it to see the brilliant future in doing business in Latin America.

Want to learn more about doing business in Latin America? Contact me: DCabrera@TopExec.org

Want to comment? Please do so on this same blog (below).

Thanks for reading.

Brazil Boom Raises Questions, Expectations

2010-09-24T14:37:00.000-07:00

I recently attended a seminar in Miami about the upcoming elections in Brazil, set for early October, 2010. Foregone conclusion? Dilma, (as she is known), the current chief of staff of President Lula, will win the election for president of this remarkable country. All five of the renowned speakers, from academia, former government officials, investment banking and various vantage points agreed, the candidate of the PT (Partido do Trabalhador) party is going to win. The questions, then, begin to crop up:

1) Will she have the charisma and political savvy to handle her own party (PT) and the coalition party (PMDB) with the same effectivness as Lula has over the past eight years?

2) Will the country, and the president-elect-to-be, know how to handle the vast financial resources (cash flow) that the country generates today with commodity, agriculture, manufacturing and other productive sectors of the country PLUS the enormous revenues that will result from the production of new deep-water oil and natural gas finds in the oceans off southern Brazil in the coming years?

3) Will the corruption that has touched nearly all parts of the Lula administration be tamped down, or will it wash over the new administration in damaging ways as yet unforeseen?

4) Can the nation step up to the vast infrastructure development needs that the FIFA World Cup (2014) and the Olympic Games (2016) will require to host the world? Will this investment be well-managed and the results beneficial to the long-terms needs of the country, or will something less satisfactory result?

5) Does Brazil's "South/South" foreign policy, intended to exclude, in some ways, the northern hemisphere's long-time power elites (the USA included), and specifically focused on the powers developing in the southern hemisphere (India, South Africa, and others) portend something that is disconnected from "Western" values? Does the USA even understand the personality of Brazil, as a sovereign nation, as it plays the Iran card, the Venezuela card, and numerous others that seem to flaunt a different point of view and policy than that espoused by the USA?

6) Will the growing middle class which seems happily engaged in new levels and means of consumption be satisfied with a "status quo" leadership and "status quo" policies in Brazil, or will it force changes in trade policy, tax policy, foreign affairs policy, energy policy and others that will create a rich, long-term future for the nation? Will the population in general continue to expect more of the same from the country's leadership, or demand something better and more strategic for the country?

These and many other questions confront all who do business with Brazil, those who deal with political and policy issues on the world stage (where Brazil is shining brighter and brighter), and all those who consume in one way or another the many, many products that Brazil now exports to the rest of the world. Believe it or not, Brazil is a powerhouse, and the rest of the world needs to understand now more than ever that it's not just a future star, but a super nova, creating more heat, energy and impact in the world than ever before.

Comments? Comentários? Por gentileza, escreva. Please, write your thoughts, and thanks for reading.

(c) Daniel A. Cabrera, TopExec.org, 2010, All rights reserved.

2010-08-16T09:25:00.000-07:00

Seguro como o Titanic?

terça-feira, 3 de novembro de 2009

This post was originally publised in Nov. 2009, at http://sonicwallbrasil.blogspot.com and is re-posted here for those interested in Network Security issues in Latin America, and as an example of the author’s writing skills. (Original text in English, translated by native Brazilian speaker)

Seguro como o Titanic?

por Daniel Cabrera, do Marketing da SonicWALL América Latina

Muita coisa tem acontecido no Brasil ultimamente, e a maioria é notícia boa. O mundo agora nota o país latinoamericano e seu líder, mais conhecido como Lula, que completa o restante de seu segundo mandato no cargo. Como um especialista no Brasil, que estudou sua história, cultura e muito mais, é ótimo para mim verificar que o país está caminhando com os próprios pés, especialmente quando a primeira década do novo século está terminando.

A Copa do Mundo, em 2010, acontecerá no Brasil. Os Jogos Panamericanos foram realizados no país em 2007. Os Jogos Olímpicos serão organizados no Rio de Janeiro em 2016 - será a primeira vez que o evento acontecerá na América do Sul. Para completar, a economia brasileira superou a crise financeira que afeta o hemisfério Norte desde 2008 e mostra todos os sinais de que irá continuar com o crescimento nas exportações, índice de consumo, descobertas de petróleo e praticamente todos os tipos de crescimento que se possa imaginar.

E o que isso tudo tem a ver com o Lula? Bem, a piada que tem circulado é que, considerando todas as coisas boas acontecendo ao Brasil, e que o Sr. Lula de alguma forma conseguiu escapar de uma série de desastres políticos, incluindo a renúncia de diversos membros de seu partido por acusações criminais, ele conquistou a reputação de presidente “Teflon”. A brincadeira é que, se Lula fosse o navio Titanic, o iceberg teria afundado!

Mas se Lula fosse o Titanic e o iceberg fosse um grupo de hackers corporativos, o navio teria sido completamente segurado por meio de equipamentos UTM (Unified Threat Management) da SonicWALL. De nenhuma maneira algum intruso, vírus, ataques ou nada parecido teria penetrado o escudo da rede de Lula com o RFDPI (Reassembly-Free Deep Packet Inspection) e as capacidades multifuncionais dessa embarcação.

Se Lula fosse o Titanic e o iceberg fosse ataques de spam prontos para afundar as operações de rede e a produtividade do Titanic, os marinheiros e passageiros teriam sido poupados pelas soluções de Segurança e Anti-Spam de E-mail da SonicWALL, que podem eliminar até 80% do spam de e-mail. As soluções da SonicWALL evitam até 98% que os spams cheguem ao e-mails e servidores da rede. Lula e o Titanic teriam navegado a pleno vapor, em velocidade total e sem serem atrasados por um bloco de gelo, não?

Se Lula fosse o Titanic e o bloco de gelo fosse um ataque de criminosos, tentando espiar as redes de voz, videoconferências e outras conexões remotas para o Titanic; a equipe toda, incluindo o capitão, teria navegado em águas calmas e se comunicado eficientemente naquela noite congelante. Ninguém tem acesso à suas comunicações protegidas pela SonicWALL, pois nossa tecnologia dá segurança a todas as comunicações remotas, formando um “túnel” criptografado específico para quem está se comunicando com a cabine de comando, e para os locais de acesso do usuário.

Então, se há um fornecedor que precisa se comunicar apenas com o setor de compras (é preciso de muito para alimentar um grande navio, sua equipe e passageiros), ele pode ter comunicação remota segura apenas com uma parte individual do navio. Se for um membro da equipe que tem o controle do navio, seu acesso é limpo e seguro para todas as partes do comando (rede) e ninguém pode roubar ou interceptar seus comunicados. O mesmo vale para voz, videoconferência, comunicação por VoIP e trocas de dados. O Titanic continua a navegar seguramente pelos icebergs e outros perigos.

Finalmente, se Lula fosse o Titanic e enfrentasse o perigo eminente de um iceberg se aproximando, no caso de falha dos procedimentos de saída, botes salva-vidas ou invenções do capitão para garantir a segurança dos passageiros, sem dúvidas um CDP da SonicWALL, específico para disaster recovery teria rapidamente permitido a recuperação das informações e a volta das instruções e planos do Capitão Lula. Com o clique do seu mouse e a designação dos arquivos perdidos, o CDP recuperaria os dados e colocaria o navio de volta em seu trajeto para enfrentar quaisquer emergências da jornada.

Navegar nos mares das redes hoje em dia requer muita segurança e, por extensão, muita proteção contra os icebergs que flutuam ao nosso redor. Por que não proteger a si mesmo e a seu navio com tecnologia que pode carregá-lo seguramente, mesmo através das piores ameaças e catástrofes tempestuosas? Então, não finja que está se protegendo, defenda-se com a SonicWALL e navegue com segurança pelos mares!

Obrigado pela leitura.

2010-08-16T09:18:00.000-07:00

This post was originally published in May, 2010, on http://sonicwall.blogspot.com, and is re-posted here for those interested in Network Security issues in Latin America, and as an example of the author's writing skills in Spanish.

Porque el Canal es Vital – Protección de la Conexión

Recién estuve en Panamá, participando en un evento de seguridad informática, patrocinado por Info Security, una empresa argentina que se especializa en estos temas y Rofcorp, un mayorista panameño de productos de seguridad. Desde luego, SonicWALL, líder en soluciones para la seguridad dinámica de la red global, aporta mucho en estos foros. Mi participación era exponer el tema de Servicios Gestionados de Seguridad, lo cual despertó gran interés en la audiencia.

Además de mi participación en el foro, interactuaba con los asistentes ante sus preguntas e inquietudes sobre el tema de cómo mejorar la seguridad Y la productividad de sus redes (un matrimonio muy importante entre la necesidad de proteger contra las amenazas mientras rinde la productividad necesaria para mantener la rentabilidad de una organización), tuve la oportunidad una noche de cenar justo al lado del Canal de Panamá con mis anfitriones, el Sr. Ricky Fletcher begin_of_the_skype_highlighting end_of_the_skype_highlighting, y su señora, Nilyan, de Rofcorp.

¡Qué obra tan maravillosa! ¡Qué tecnología tan básica, que aún opera con elementos originales de los primeros años del siglo veinte, desde hace casi cien años! Los buques entran cada sección del canal (hay una palabra específica que es “esclusa”) donde el agua entra (para subirlos) o desocupa el espacio (para bajarlos), y una vez que el nivel del agua esté igual al nivel del agua en la dirección del movimiento del barco, se abre la gran puerta que separa cada esclusa y así avanza el barco hacia la siguiente conexión en su viaje al Pacífico o al Caribe. Es verdaderamente una maravilla observar la rapidez y la eficiencia de estas transacciones que ocurren 24X7, con tráfico bi-direccional de barcos, buques, veleritos y otros medios de transporte flotantes.

El Canal de Panamá produce más de US$2.2 mil millones de dólares anualmente (2009) en tarifas para la República de Panamá, lo cual representa un porcentaje muy importante de la economía nacional (favor ver más sobre Panamá). Desde la transición de los EUA a Panamá, el canal ha sido una parte fundamental del patrimonio de este país, y contribuye un gran porcentaje de los ingresos financieros de la nación. Inclusive, hay tanto tráfico marítimo que depende de esta conexión, que el canal no da abasto, y muchas veces los buques están esperando su acceso varios días o más antes de poder transitar el istmo. Por eso, Panamá está ampliando y construyendo otro canal, con aún más capacidad, sobre todo para los buques masivos que ahora transportan petróleo o automóviles y no caben en el canal actual. Con la ampliación del nuevo canal (más ancho de banda) habrá aún más ingresos, más comercio, más tráfico vía esta conexión tan importante.

¿Qué tiene que ver esto con seguridad informática? Pues imagínese que la conexión del canal dejara de funcionar, por cualquier motivo operacional, o por acciones bélicas que impidieron el comercio marítimo. El efecto inmediato en la República de Panamá sería una fuerte caída en los ingresos económicos. ¿El impacto? Grave, económico y negativísimo para el país. Asimismo, las empresas transportadoras, los productores de autos y todo tipo de mercancía tendrían que asumir más costos, por el viaje extenuado vía los mares de Tierra del Fuego. Mejor dicho, el impacto sería nefasto en términos económicos. La productividad de Panamá y del mundo sufriría por falta de conectividad.

Si me sigue la analogía, se puede imaginar también una conexión incapaz de dejar pasar todo el tráfico en tiempo real que necesita la “empresa” de Panamá. Esto sucede actualmente, porque no hay cupo suficiente en la conexión que es el canal. Por eso la ampliación que está progresando actualmente, igual en cierta forma al crecimiento de ancho de banda que el Internet ofrece cada día más, y por casualidad los usuarios demandan para sus trabajos cotidianos también. ¿Y qué de la red de su empresa? ¿Tiene el rendimiento y la capacidad que necesita para todo su tráfico? ¿Está protegido contra las amenazas que circulan vía los “mares” de la red global? ¿Qué tal si el Canal de Panamá permitiera entrar barcos pequeños, llenos de piratas u otros criminosos que quisieran impedir el tráfico para cobrar tributo, robar mercancías o hasta causar peores problemas? Estos serían análogos a los virus, malware y spyware que amenazan las redes de cómputo, y esto también podría ser un problema masivo para el Canal de Panamá.

Obviamente, el Canal de Panamá es vital, tal como es la conectividad de la red de su organización. Por eso, la protección de esta conexión es importantísima. La única forma que permite una completa productividad (throughput) con protección comprensiva (Reassembly-Free Deep Packet Inspection) en el “canal” de su empresa es con un dispositivo UTM-Firewall Inteligente de SonicWALL. Todo el tráfico pasa velozmente vía su red, y todos los “buques” (IP data packets) reciben una revisión completa, con un escaneo completo de todos los elementos para eliminar “piratas”, “secuestradores” o “espias” que quisieran pasar sin detección. Aún cuándo podría extender esta analogía, creo que debe estar claro que el mundo prospera cuando el Canal de Panamá está funcionando 100%, con eficiencia, sin demoras, y desde luego sin bloqueos o trancones de cualquier índole. De igual manera, SonicWALL ofrece soluciones para la seguridad dinámica para la red global, de la cual dependen empresas en el mundo entero. ¿Quiere saber más para asegurar protección a su conexión? Háblenos, y con gusto le enseñaremos cómo proteger la productividad Y la seguridad de su conexión a la red global. ¡Qué viva el Canal de Panamá, y qué viva la conexión con protección!

Food Shortages in Venezuela

2010-04-23T14:09:00.000-07:00

This post was originally drafted in October, 2009.

My travels haven’t taken me to Venezuela in a number of years, yet I remain involved in business activities that include this Andean nation. Recently I was able to spend some time in California and Colombia with folks from that country, and from its neighbor, Colombia. Naturally, our focus was on doing business, dealing with barriers created by the Chavez government in Venezuela, and building our ability to service those sectors still semi-functional in that country.
Anecdotally, here are some of the issues and problems that, while well documented in the press, simply amaze me, and generate simple questions, like “why”?

Thirty eggs today cost about US$3.50 in Colombia. In Venezuela, if you can get them, those same 30 eggs will cost US$20.00. Why?! Supply (or lack thereof) and demand (plenty of).
Venezuelans who travel abroad and buy food stuffs to carry home, (canned or dried goods, etc.) will be warned by the airlines prior to flying from the USA to return to Venezuela to reduce or eliminate the types and amounts of food they are carrying, as the authorities will confiscate them. Why?! People are hungry and Venezuela cannot produce enough for its population today.

Businesses that do legitimate transactions and obey all the protocols and regulations, in order to win and complete their contracts can find at the last minute, the Venezuelan government will “award” these contracts to investor nations, such as China, in the ultimate quid pro quo for hard currency investments from Sovereign Investment funds, which Venezuela seeks for political reasons, mostly. Even huge multinationals with decades of experience and commitment to doing business in Venezuela are left out to dry in these kinds of situations. Why?! Could it be politics?
Employees of major multinational firms in the computer industry are leaving the employ of these firms, when their requests to be transferred out of Venezuela are not forthcoming. No need to ask why, under the circumstances.

Not to beat a dead horse, but it’s clear that Venezuela, for all its heralded oil wealth is simply unable or unwilling to produce or import sufficient food for its own population. Further, in the words of a Colombian colleague, who has consistently and frequently traveled to Caracas over a thirty-year period, the situation has gone from bad to worse to far worse in the past several years. He refers to all aspects of the city and its environs, as well as crime rates, water and electricity shortages, and so forth. When it comes to doing business, what used to be a “process” to repatriate US dollars from the Bolivars earned locally, has now become an impossibility. You may be a millionaire in Bolivars, but you cannot pay your bills to vendors/partners/suppliers who request hard currency (US dollar, Euro, etc.) payment. Only those willing to ship dollars in suitcases surreptitiously can get their bills paid, it seems in today’s Venezuela.

As one who has specialized in Latin American business for nearly 30 years, this is a sad reality, and one that surely will have to change some day, if the Venezuelans who seek a better country have any hope for the prosperity and productivity that exists today in neighboring Colombia. Why?! I suppose that politics trumps common sense and supply and demand economics. Go figure.

Thanks for reading.

©Daniel A. Cabrera, TopExec.org, All rights reserved, 2010.

Colombia Leads in Competitivity – Notes from Andicom 2009

2009-11-05T09:24:00.000-08:00

The world stage is always a good place to stand, if you want to be measured, analyzed or compared. In this regard, I found out a lot about Colombia at an event called Andicom 2009, held recently in Cartagena, Colombia.

This event has been held in Colombia for nearly 30 years, and it brings together telecommunications companies, government organizations, TV broadcasters and any number of other players, including more Internet Service Providers, infrastructure firms and others competing for space in the “spectrum” wars that affect all parts of Latin America and the world. At this year’s event, there were 2600 attendees, 160 media representatives and a wide variety of vendors/participants representing more than 26 countries, including France, the honorary “partner” host in this event.

As such, this particular forum is a good one to take measure of what’s happening in the Andean Region. Dr. Alvaro Uribe Vélez, the current president of Colombia, provided some of the highlights in Colombia, in his closing ceremony speech, October 30, 2009:

World Bank research shows Colombia has moved to 37th in the world in competitivity, from a former position of 160th in the world.
Colombia has leaped past other big Latin American economies in this ranking, now surpassing Brazil, Mexico and Chile.
Colombia graduates today thousands of students in M.A. and Ph.D. programs, “on shore” as opposed to “off shore”
Colombia generates many other thousands of students earning technical or trade program degrees, through various governmental and educational organizations.
Colombia has a master plan for taking its Internet hubs from one, centralized connection (from Bogota) to a hub and spoke system that serves all major cities and their surrounding cities and towns. A project to lay fiber optic cable under the sea to connect its island provinces of San Andres and Providencia, is starting now.
New spectrums are being opened up for television, IPTV, government/security usage and private industry, based on both the country’s ongoing commitment to public safety and security (in the fights against terrorism, guerrilla violence and narco-trafficers), as well as its commitment to improving the country’s productivity and future prosperity.

While this list is not all-inclusive of the remarks made by Dr. Uribe, or other speakers at Andicom’s closing ceremony, it is a sample of the vision and the future of this Andean country, which today has a population of approximately 46 million, and a widely-diversified economy, one of the leaders in Latin America. At the same time, Dr. Uribe insisted that the world should continue to bring direct financial investment to the country, as this flow of capital, ideas and collaboration by countries, companies and individuals is a vital part of Colombia’s continued growth and drive to expand prosperity to all parts of its population. A key element of his remarks was the drive to provide social impact to all economic strata within the country through telecommunications, Internet and other “tele-services”. These services today facilitate programs and productivity in education, medicine, agriculture and many other parts of the economy.

Finally, one overriding note from Dr. Uribe’s comments was that of security and public safety. Clearly, this is underscored by the greatly-improved security situation throughout Colombia, which has worked diligently to reduce the spaces and places where the FARC and other guerrilla/narco-terrorist organizations can harm citizens and their means of earning a living.

In light of my current employer, SonicWALL’s network security expertise, and the confluence of voice/data/video and other information flowing over IP networks, such as the Internet, private PBX networks, VoIP connections, etc., it is of particular interest to note how much the current prosperity and productivity that Colombia is enjoying is a direct result of the improved security mechanisms and commitments that the Colombian government is successfully employing throughout the nation.

It makes me think that if ever companies and customers were interested in securing their own networks and VoIP transactions, and such, they would be wise to make sure that security and protective measures for all elements of their network infrastructure were in place and kept constantly up to date. Clearly, the threats that have consumed Colombian society for forty years, when reduced and isolated, as has happened during Uribe’s administration, are parallels to the damage and risk that happen to computer networks when left under- or unprotected. Security on the network is a key to productivity, just as security in a nation like Colombia is vital to productivity and prosperity and, yes, competitivity.

In sum, Andicom 2009, in Colombia last week (Oct.28-30, 2009) was an experience that underscores the vibrancy of both the Andean region and Colombia in particular, as well as the ongoing technology trends that drive productivity and prosperity in this part of the world. Let’s hope that such positive trends continue for all concerned.

© Daniel A. Cabrera, TopExec.org, All rights reserved, 2009.

To read this posting in Spanish or Portuguese, please look on these blogs:

http://sonicwallblog.blogspot.com/ (Spanish)

http://sonicwallbrasil.blogspot.com/ (Portuguese)

Presidential Security - Good Enough for You?

2009-04-21T06:42:00.000-07:00

I recently traveled to Mexico City, in advance of Mr. Barack Obama, who arrived the next day with his entire presidential toolkit of vehicles, helicopters, Airforce One and related elements of world class travel. I was there on business, to foster the sales and marketing of my company's products with local partners and wholesalers. Mr. Obama was there to foster partnerships of a different nature, but I found some notable parallels. Bear with me as I mention a few, and how it might be worth considering for you or your company in today's menacing world of threats, spies and globalized communications and network connections.

Mr. Obama travels everywhere with a fleet of vehicles that is specially built to resist arms fire, bombs, chemical attack and who knows what else. His limousine is known as "The Beast" for its weight, girth and protective armor. He is safe from most any kind of threat while riding in this vehicle. He is, in effect, safe because of the protections provided to him in what we, at SonicWALL (my current employer), might called Unified Threat Management (UTM). By using the types of security protections that UTM offers, the president is sure to have no worries about his personal safety, when riding in the Beast.

At the same time, given Mr. Obama's penchant for staying connected to his loved ones and his inner circle via a Blackberry device, it stands to reason that he needs to be sure about his Email Security, so that no one reads his communications, nor infects them with viruses, spyware, malware or other dangerous worms that would compromise Mr. Obama's top-secret communications. This is another parallel with what SonicWALL offers --- a full suite of Email Security capabilities to protect email, which is today's most vital communications tool used by millions, if not billions of people around the world.

How about his remote connections to the White House, or to the Department of Defense data sources? How about the need for secure remote connections for his staff, the military and others, including Mr. Obama to data sources and servers that must remain off limits to all but those who are ID and Password-authorized to enter? This is where even a president would need a solution to provide SSL/VPN secure remote access capabilities from anywhere in the world to the data sources needed for day-to-day work and productivity. Notably, SonicWALL offers this, as well, and any of our customers can have presidential-quality connections this way, too.

Finally, if I'm allowed to draw the complete analogy, what does the President of the United States of America do for continuous back-up and business continuity? How does he handle it if an important speech he's working on for the Mexico City meeting or the subsequent Latin American summit in Trinidad and Tobago gets wiped out inadvertently on his PC? What happens if his hard disk gets corrupted and he loses everything, including multi-trillion dollar budget spreadsheets or top-secret secrets concerning what kind of dog his children will get? (This was a very closely-guarded secret, you know). He absolutely has to have a system that allows for a constant and seamless back-up of every creation and/or modification of data --- all words, numbers, photos, that are part of his important presidential duties. This we can provide as well, with SonicWALL's CDP product for back-up, recovery and business continuity. No missing tapes, no 13-minute blank spots (a la Richard Nixon) if you're using this type of continuous back-up technology.

So, even though my time and that of Mr. Obama was short in Mexico City, we both brought to Latin America our best arsenal of security practices. Each of us traveled with the tools needed to protect our communications, secure our connections, safeguard our email and back up our data, in case of some nefarious threat that might have compromised the free world. Each of us, I would say, arrived back in the USA, able to say, "Mission Accomplished" (apologies to George W. Bush).

Thoughts, comments or opinions? Interested in knowing more? Drop me a line or post a comment, and thanks for reading.

Other blogs of interest:

www.TopExec.org/TopExecBlog
http://sonicwallbrasil.blogspot.com/
http://sonicwallblog.blogspot.com/

©Daniel A. Cabrera, TopExec.org, all rights reserved, 2009.

Observations on Latin America and IT Evolutions

2009-04-06T16:23:00.000-07:00

Having worked in Latin America for many years within the IT industry, I can honestly say, that much has changed. From the early days of the IBM compatible PC, to the Local Area Network (LAN) running Novell Netware, to Client/Server architecture, mainframes, databases and now, most recently “Cloud Computing” (also known as Software-as-a-Service), there have been many changes.

At the same time, it remains as important as ever, in this writer’s opinion, that Latin America gain access to and use the latest technology to leapfrog some of the challenges and disadvantages that have historically affected or slowed down the region’s progress. Even in the days of rampant software piracy (which remains a popular phenomenon today), when providers of PC software had no means other than police raids and legal lawsuits to attempt to slow down the pirates of the Caribbean and other parts of Latin America, it was always in the short-term best interest of economic and operational progress that IT solutions be brought to bear on the competitive and productive challenges present in Latin America economies. This remains true today --- for the short and long-term best interests of Latin America.

What has changed significantly in the past several years is the importance of and predominance of the connected computer and the networked user. This is probably the most important evolution in Latin America’s and the world’s use of IT solutions in the past ten years. In effect, it means that the typical user, at nearly any level of the organization, is far more productive when he or she is connected to the network and is able to fluidly interact with his or her colleagues and the critical data that moves commerce, politics, education and any number of other professions forward on a day-to-day basis. Without your network connection, your email, your web browser and your on-line data, how can you be productive and get all of your work done? This is all the more so, when companies and individuals rely on being mobile or connect via the “cloud” to complete their tasks.

But while this phenomenon of the Internet and the connected computer user is a fantastic advance for each of us, it also poses multiple risks, and cries out for companies, executives and individual users to change their habits, get educated on security risks and take the necessary precautions to protect themselves and their organizations with best practices and best technologies for securing the network, while keeping it fluid and productive for all users. This is one area where Latin America seems to understand, but prefers to go slow when it comes to getting educated and taking the steps needed to protect their networks and critical data.

Is this meant as criticism of all of Latin America? Of course not! Is it meant as an indictment of all users in region? No, certainly not! But in the greater scope of the Latin American markets that I know so well, there is an urgent need for more education and orientation as to why security solutions are required --- not just for virus attacks or spyware, common-enough threats --- but also for the more pernicious and potentially damaging effects of people (inside the company) stealing trade secrets, or competitors infiltrating company data bases, or employees bogging down the system by clogging up the bandwidth with personal IM chats, video down loads or other unauthorized use of the company’s network.

It’s also a matter of explaining in black and white (or pesos or reais or dollars) what it costs when a network is off-line for any period of time, or when important data is lost and irretrievable, or mobile workers (salesmen, inspectors, auditors, etc.) are unable to get connected securely to the home office to input their results, download critical information or upload reports, as needed.

According to an article, “Make Your Business Safe and Secure”, by Amy S. Choi, from Business Week’s Small Business magazine, too many companies are careless about protecting their data. “Data breaches cost companies an average of US$300,000 in losses a year, according to the Computer Security Institute. So if you’ve got employees working remotely, make sure they use a virtual private network (VPN) and a strong password when connecting to your network.” http://images.businessweek.com/ss/09/02/0213_security/9.htm Is that something that Latin American organizations can afford to ignore?

The bottom line is that this IT Evolution that continues to move forward in Latin America and the world will constantly put stress on networks and organizations to protect them securely while keeping them fluid and operational for day-to-day productivity. The speed of these challenges, just as the vicious economic and political cycles that all of us are confronting in 2009 and beyond, is something that makes it vitally necessary for security solutions to be at the top of the list for what gets taken care of BEFORE the problem(s) arises, not afterwards. Like riding a bicycle or motorcycle, you put on the helmet before you go out to ride, not after you’ve struck your head on the pavement. This is what security solutions are all about --- preventing the damage and making sure that your network and your data are protected always, at all times, well in advance of the emergency.

How do you see your organization confronting these issues? Does your firm protect its intellectual assets vigorously? Are your users and systems protected at all times? Does your IT staff protect the company from internal threats, as well as external threats? Do you think Latin America is ahead of or behind the curve when it comes to network security? Let me know, and thanks for reading.

Note: this blog posting was written for posting in Latin America in both Spanish and Portuguese. Interested in seeing them in “local” language versions? Then, check out these blogs, when you have a chance. It won’t be long till you see this posting there, as well.

http://sonicwallblog.blogspot.com/

http://sonicwallbrasil.blogspot.com/

© Daniel A. Cabrera, SonicWALL, Inc. All rights reserved, 2009.

Caribbean Islands Suffer from U.S. Problems

2009-03-23T06:47:00.000-07:00

It doesn't take long when you arrive in Santo Domingo (Dominican Republic) to pick up on the issues that affect this country of 10 million and its economy.

The first words out of the cab driver's mouth do three things: lament the demise 40+ years ago of strongman Trujillo (who ruled for 31 years and had the local currency worth more than the USD), and lament the decline in tourism (down 30%) and the decline in "remesas" (electronic wire transfers of USD from abroad), also down 30%.

In light of the world-shaking economic problems in the USA, these island nations (and there are dozens of them in the Caribbean) are struggling with how to maintain their economies. This is easily understood in light of the economic "engine" that is the USA and its 300 million consumers. When the U.S. citizenry turns down its consumption of imported goods (raw materials, finished goods, agricultural products, etc.) it has an immediate impact on export economies, large and small. Whether that is the Dominican Republic or Brazil, the results are serious and immediate.

When the lack of capital, credit, liquidity and other financial mechanisms further exacerbate this situation, and when the tourist dollars that bankroll the casinos, fill the hotel resorts and pay the cabbies their US dollar-denominated fares disappear or diminish significantly, then there is real trouble for the islands. How this plays out for U.S. exporters, especially in light of "protectionism" that seems to be the flavor of the day from the U.S. Congress, where retaliation is easily played by the other side. Note, for example, Mexico's retaliation for the U.S. violation of NAFTA rules regarding Mexican truckers being able to move goods freely between the two countries.

How is your company responding to the threat of protectionism? To downturns in your export markets' ability to buy, pay and finance their importations? What are you doing about it? Drop me a note and let me know. Thanks for reading.

© Daniel A. Cabrera, TopExec.org, All rights reserved, 2009

The Buzz from Brazil, As I See It

2009-02-19T17:58:00.000-08:00

Having recently taken a new job that gives me responsibility for marketing high tech solutions for network security throughout Latin America, I have the chance to travel from time to time in the region. As of this writing, I am in Sao Paulo, Brazil, where I have been working for four days, interacting with multiple professionals associated with my employer's product line.

What does the world look like from Brazil, on the eve of Carnaval (which starts on Friday, February 20th and runs through Tuesday, February 24th)? Well, in the big city part of Brazil, represented by Sao Paulo, it looks reasonably good. The newspapers and TV news all report dutifully and with significant interest on the news pouring from the USA about economic crises, and multi-billion dollar solutions for the auto industry, the home mortgage meltdown and various other challenges. Brazil, meanwhile, toils away with its own share of challenges, and the government continues to commit significant purchasing power to helping its citizens deal with fallout from up north. Globalization being what it is, however, there is no escape from the forces of demand and credit drying up, all the same, as one of Brazil's premiere companies, Embraer, announced today it's laying off 20% of its workforce, due to a drop in worldwide demand for its airplane product offerings.

Additionally, the buzz in Brazil seems to be about the 30-60 day wait to buy (and receive shipment of) a new car. Even those wanting to buy a used car have a period of time to wait, due to demand outstripping supply. Restaurants appear busy, but mostly during the lunch hour, not so much at night. People seem to be complaining that money is tight, yet you can't find a ticket for entry into the Sambodromo (where Sao Paulo's Carnaval celebration is held) for less than $800 (USD).

Folks that are aligned with high-tech product offerings appear to be forging ahead with growth plans across the board. Their main concern is the fluctuation in the US$/R$ exchange rate, which causes their customers and themselves concerns about exactly how much they'll be paying to their US suppliers when the bill comes due. Nonetheless, as off-shore HQ offices tell them to gird themselves for "economically challenging" times, they respond by gearing up for more usage of technology, such as video conferencing, on-line chat and presentation services, and the security solutions that are needed to make sure business (on-line) is not interrupted by connection failures, security breaches or other QoS (Quality of Service) problems. This is a good market for my employer's offerings, and I'm happy to be engaged in serving the clients and partners that we have in Brazil.

In brief, the buzz from Brazil (at least from a "macro"cosm of the economy, like Sao Paulo) is positive, but not 100% so. It remains to be seen how deep the macro economic problems of the world at large will affect this land of extreme potential and tremendous human and natural resource potential. Stay tuned, and thanks for reading. As they say in Portuguese, "Até mais!"

© Daniel A. Cabrera, TopExec.org, All rights reserved, 2009

Traditions Die Hard

2008-11-25T05:14:00.000-08:00

Many years ago, when first traveling in South America, I visited Lima, Peru. It was a fascinating place, due to the historical juxtaposition of Spanish colonial history, indigenous traditions (and people), and of course the ever-present yet incongruous influence of "western" culture (Coca Cola, etc.).

By a serendipitous turn of events, my companions and I found ourselves touring the most famous bull fighting plaza in the country, the Plaza de Acho. As luck would have it, the place was empty, since our visit was many months in advance of the temporada, the season when Spanish and Latin American matadores perform in this centuries-old tradition of tauromaquia.

Our guide allowed us to descend from the seating area of this circular arena, down to the ring itself, where we stood on the sand that serves both bull and bull fighter in this historic and artistic ritual of bravery and sacrifice. With the Peruvian sun shining brightly upon us, we imagined how it must be to see the gate (la puerta del toril) open, and the fresh fighting animal --- raised exclusively for this moment --- come dashing into the ring, seeking to dominate and defend against anything or anyone that might challenge his supremacy.

Having seen bull fights in many famous cities of Spain and Latin America, I must tell you that the art of the fiesta brava is something that has to be learned about. There is a culture and history of this passionate art form, and it is something that escapes many who see only a spectacle of blood and sand. By reading and observing all the elements of this ritual, one becomes more respectful of the bravery and skill that it takes for a single man to face a thundering beast weighing more than half a ton, alone with just a cape in the middle of a ring. To do it successfully, while also showing mastery of the cape, the banderillas and finally the sword and muleta, in all the various moves and classical passes that dominate the fighting animal, is to show what it means to be a matador.

In today's politically correct world, even traditions that are hundreds of years old, and have shown through the ages that they express something ethereal and artistic, are under siege. Even in a city and culture as traditional as Lima, Peru's there are those who would protest and put a stop to this tradition. Let's hope that the world in all of its unique traditions does not become one homogenized culture that eliminates every single tradition, just for the sake of political correctness. Let's hope that traditions as skillful and laden with meaning as those represented in the fiesta brava will not be vanquished by those who hope to make everyone follow their particular view of the world.

To learn more about the tradition of bull fighting, consider seeking books such as:

La Fiesta Brava, the Art of the Bull Ring, by Barnaby Conrad, Houghton Mifflin Co., Boston.

Bull Fever, by Kenneth Tynan , Harper and Brothers, NY, NY.

The Bullfight, A Photographic Narrative with Text by Norman Mailer, A CBS Legacy Collection Book, distributed by the MacMillan Co.

Thanks for reading.

© Daniel A. Cabrera, TopExec.org, All rights reserved, 2008

Seasonality in the Southern Hemisphere

2008-11-24T17:10:00.001-08:00

"A funny thing happened on the way to the (U.S.) company's year-end (December) celebrations and quota performance recently when dealing with South America....no one bought any of its product!"

Thus started a sad and fruitless chapter in one particular company's history in Latin America, despite its well-known mantra of Kaizen (constant improvement) and other customer-centric philosophies. You see, for those who have only a limited knowledge of South America, the seasons are reversed, and the selling motion and customer interaction are at times challenging for "northern" firms that think everything in the world operates on "U.S. standards".

Therefore, pay attention to these kinds of realities, when doing your work in the southern hemisphere, particularly in Latin America:

Budgets for capital expenditures (big ticket software, computers, machinery, etc.) are often set early in the calendar year, and are fully-allocated to vendor "A" or "B" by mid-year.
Companies that operate a year in advance for such budgeted items will often be planning their "next year" budget one (1) full year ahead.
Expenditures for these kinds of acquisitions will often be completed by December/year-end, however, if you and your firm have not been actively engaged in the "purchase cycle" well in advance of the previous year's budget season, you'll have another year to wait to be considered at all.
Additionally, if you and your firm have not earned the right to provide product or services, then for all your excellent marketing and capabilities, folks in South America (and Latin America, generally) will simply not give you the credibility to consider your value proposition.

To be sure there will be happy exceptions to these generalities, but based on this writer's many years of experience in the region, it's critical to take into account the seasonality that affects the southern hemisphere. What's cold and wintry to you in the north, is hot and summery in the south. Buy cycles, decision time-frames and associated operational imperatives are significantly different in the southern hemisphere (e.g., South America), than they are in Europe or North America. Sound simple? It can be, but you have to know, you have to plan and you have to execute appropriately to make it happen.

How does your firm handle this kind of challenge? What are you doing to get ahead of the curve and work your calendar effectively in light of fast-approaching summertime dates in South America?

Thanks for reading, commenting and passing along these tips from LatinAmericanKnowledge.

For other blog topics from this same author, take a look here.

© Daniel A. Cabrera, TopExec.org, All rights reserved, 2008

Lula's Meltdown or Bush's?

2008-11-17T06:04:00.001-08:00

Per today's Miami Herald, there is plenty to worry about in Brazil as a result of the current "meltdown" affecting world economies, jobs and industries of all sizes and types. Check this out, based on one particular news source that keeps a close tabs on what happens in Latin America.

http://www.miamiherald.com/business/story/772086.html

Despite what Mr. Lula (Brazil's president) stated earlier about his lack of concern for the economy challenges in the USA and Europe, evidently the Brazilian consumer is showing distinctly different behavior when it comes to spending. This, in turn, like in the USA and other markets, reduces demand, curtails retail sales & purchases, which in turn leads to less jobs, less growth and other deflationary trends.

Again, to quote a number of Brazilians, they are "accustomed to these crises" so this is just one more in a string of such events. Nonetheless, the ebullience of the economy in Brazil for the past 3+ years is such that a great many more citizens in that country are now thoroughly vested in a continuation of sound economic policies, robust job markets, and moderately easy access to credit.

What happens to any economy where the "retail" consumer is responsible for a large percentage of the overall GDP, such as in the USA? How do companies and entire economies cope when that demand is reduced substantially or in some cases, eliminated, due to other economic adjustments? No company and no industry, it appears, is immune to the deflationary aspects of this downturn in demand (for more on this look at: http://online.wsj.com/article/SB122688301012632105.html )

>© Daniel A. Cabrera, TopExec.org, All rights reserved, 2008

Amazing Digital Capabilities in Brazil

2008-11-10T13:59:00.001-08:00

Call me a technophile or just someone interested in free markets, but either way, the following anecdote shows some of the innovations going on in our world today. In a recent phone conversation with a dealer/reseller of Wi-Fi Broadband products in Brazil, he described one of his solutions:

For the second largest container/shipping company in the world it is imperative to have maximum efficiency in the handling (loading and unloading) of containers that carry the world's commerce inside gigantic, seagoing ships. To do this the old-fashioned way, the company has to have on-board staff (humans) that tell the crane operator where a particular container is, how it's stacked, and in what order (two levels down, etc.). Using two-way radios this can be done, albeit with some delays as the human staffer has to make his way through the ship to identify and locate a particular container (with its unique ID number).

By using Wi-Fi technology that is linked to each container, the crane operators can easily identify the container, know whether it's vertically or horizontally positioned and find out other important details for loading or unloading. With the cost of labor reduced and the rate of efficiency increased, these shipping operations can move at maximum rates, minimizing the time and cost of having these behemoths of the seas in port any longer than necessary.

This, like many other examples from Brazil (voting on-line, paying taxes on-line, etc.), shows a country that is in the vanguard of technology usage to sustain its amazing rates of growth, its incredible (positive) balance of trade and other leading indicators throughout their economy. What do you think? Do you have an anecdote from domestic or international shores about amazing digital capabilities?

Thanks for reading, and pass it along!

Making the Case for Credibility - A Latin American Exec Confirms My Comments

2008-11-07T08:10:00.000-08:00

As posted in commentary on October 31st of this year, the key to establishing successful business in Latin America is through the hard work and profitable pleasantries of personal relationships.

Recently, I met at length with the G.M. for Latin America of a company specializing in high-tech solutions for security within the Information Technology (IT) industry. The company is on the smallish side, but the products and appliances they offer are excellent, with a fantastic cost/benefit advantage. They compete with some of the biggest and best known companies in networking, security and similar technologies, and they do so without a huge physical infrastructure, local/on-the-ground presence or a well-known brand. As a result, they have to compete with not only the quality and competitiveness of their offerings but more specifically with their commitment to the marketplace.

In what seemed like an echo to the words I wrote here last month, when asked what I thought it would take for his company to expand its success in the region, I told him the following:

Your company has to be willing to invest for the long-term, in people, talent, product, services
You have to be willing to create a presence, and not expect results through once-in-awhile efforts
Your credibility is earned over time, with consistency and actions, not words
Your brand has to be positioned and nurtured to establish it as worthy of the region's business; you have to earn the right to do business in Latin America
You must create value in what you offer, and not just expect pricing or discounting to lead to long-term success
You have to become "local" in every sense of the word, and reach your consumers, customers and partners by ways they deem appropriate or useful, not necessarily by your ways

When I finished running down my list of attributes and qualities that in my experience have proven to be tried and true, he said, "I couldn't have said it better! That's exactly what I think about doing business in Latin America." So, in sum, it's not just my experience that underlines these realities in Latin America, but the experience of others that corroborates these realities.

Will every firm take this approach? Certainly not! There will be those that prefer the quicky method, the Wall Street-driven "gotta have it now" approach, but in the end, these will not garner a long-term presence. They will pass through, and their presence will be short-lived. Latin America has changed immeasurably in the past 20+ years, and consumers and buyers throughout the region are far more demanding now about who and how they engage with for commerce, for investment or for any number of other opportunities that continue to arise within the southern neighbors of the United States of America. Which approach is your firm taking? Is it the right one?

Personal Relationships and Business

2008-10-31T07:26:00.000-07:00

On a recent radio "article" on NPR, (National Public Radio), the topic was about doing business in Iraq, and all the billions of dollars and euros that are being earned by companies from around the world, mostly non-American corporations. The basis of their earning this business and these revenues? Their willingness to establish themselves, on a personal relationship basis, with the ministries and departments within the Iraqi government, to earn the right to compete for contracts, projects and other investments planned for 2009 and beyond. To paraphrase one commentater: the Westerners are only interested in getting the job done, getting the answer quickly and moving on. The others are willing to stick around and build up the trust and involvement required by these consumers (government or otherwise) even if that means spending a lot more time and effort.

This brought to mind the very real circumstances that exist today in Latin America. It is not simply a matter of having an American executive open up his/her rolodex and start making calls to garner business in the region. Likewise, it's not an effective strategy to drop in for a once-in-awhile meeting or sales call with prospective customers (private sector or government) and expect that meeting or that call to create the necessary elements to winning any substantial business.

Just as in the Middle East, and Asia and most of the world, consumers (executives, corporations, small and medium businesspeople, etc.) are going to insist on establishing with you, your company and your offerings a working, personal relationship. As a friend of mine from Argentina said to me recently, "No one wants to do business with someone who is not committed to the relationship." So, a glad-handing representative from anywhere (even within Latin America) will likely fail to win the business by seeking the quick, easy path to success. Instead, it takes time, effort, actions, investments and a lot of commitment on the part of anyone or any company that wants to earn the right to provide service, products or solutions to customers in Latin America.

Don't believe me? Ask a Latin American what they look for most in a vendor or supplier relationship. Better yet, ask yourself if you're using a long-term approach to building credibility and thus positioning yourself and your company's offerings to best serve the needs and potential wants of your prospective customers in the region. By doing so appropriately, you'll find that success comes to you much more completely, and for the long-term, rather than quickly.

For more information on doing business in Latin America and the world, see:

www.TopExec.org

Thanks for reading, and see you next time.

© Daniel A. Cabrera, TopExec.org, All rights reserved, 2008.

2008-10-30T04:27:00.000-07:00

Latin America in 2008 - a snapshot

This post originally appeared on June 19th, 2008, at www.TopExec.org/TopExecBlog

In speaking with a friend recently, someone who lives and works in one of the powerhouse European countries of the world, we got to discussing business opportunities in Latin America. His comments, among other things, brought to bear some of the unknown, or underappreciated, realities of Latin America today.

Some of these include regional development, powerful economic and democratic changes that have taken hold since the turn of the 21st century, as well as a little-noticed items that might surprise you. To wit:

In a Miami Herald article in April of this year, efforts were described throughout the region, notably Brazil, where environmental projects are making headway in reducing greenhouse gases, and other pollutants, through engineering and technological approaches. Notably, one of the persons quoted in this article also called out the vast difference between Latin America and China, stating, "Decision-making in Latin America can be very difficult." Whereas in China, with an authoritarian government, decisions on complex or major environmental projects can "...take two months to develop a plan. It's one year or more in Latin America."

Other commentators, as well, have noted some of the challenges in the region, particularly adoption and usage of the Internet as a major thoroughfare for business, education, commerce and governmental initiatives. Despite some progress, the trend in the region is not keeping up with standards and "through-put" being led by European and Asian nations. This creates challenges for those wishing to offer their "software-as-a-service" or other entities that want to "virtualize" their offerings, cut down on travel expenses or otherwise facilitate service or product offerings via this important mechanism.

That being said, one can also point out to extremely positive changes and progress being made in the national economies of Mexico, Colombia, Brazil, Chile, Peru and other nations. Brazil, in particular, is on the cutting edge in size, breadth and profitability for any number of industries, including automobiles (8th largest market in the world), PCs (5th largest in the world), cellular phones (3rd largest in the world), and companies of all types are investing to make sure they have long-term success in this giant market. For a quick look at some comments on this overall trend in Brazil, check out this article.

The bottom line? There is a lot of opportunity throughout Latin America, and the firms that understand this and gear up to become truly "local" participants, drawing on their "global" resources as well as using effective representatives or surrogates in meeting the needs of consumers (business or individual consumers), will find that their investment in time, resource and money will pay off significantly. Is it easy? No, it never has been and will continue to present challenges. Is it worth it? You betcha.

Thanks for reading, and if you need help addressing your Latin American business interests, feel free to drop me a line (info[at]TopExec.org). I can help.

2008-10-30T04:11:00.000-07:00

Brazil Brings it North

This post originally appeared on Sept. 8, 2008 at www.TopExec.org/TopExecBlog

As a long-time specialist in Latin America business I can tell you without a doubt that the changes in Latin America over the past few years have been astounding. Today's Wall Street Journal for example calls out some of the historical trends, pan-regionally, and the effect of U.S. policies on trade.

From my point of view, the real mover and shaker in the region (and I'm not talking about samba or capoeira) is Brazil (or as they spell it, Brasil). This country has moved inexorably from a backwaters, wannna-be, to a real player on the world stage. In recent months these kinds of developments are taking place, increasing the movement from south to north:

1) Brazilian mining companies are going "vertical", meaning they not only mine the iron ore that is shipped worldwide to make steel for autos, washing machines and the like, but they are now creating totally integrated operations to mine the ore, refine it, and create the steel products for domestic and international use. This is BIG news for steelmakers in other parts of the world, not all of it pleasant for those mills that only produce steel, after sourcing the iron ore from Brazilian miners.

2) U.S. companies are seeking and finding financial support from Brazilian investors - this is really something, when a "3rd World" country can generate enough free cash flow to offer investments into US or European-based companies. Case in point, a firm in the US that specializes in retail solutions for grocery companies and other retailers, recently turned to Brazilian investors to expand and grow its business. Not only will there be Brazilian money helping the U.S. firm grow, but Brazilian management expertise will be there, as well.

3) For those who drink beer, and enjoy regional varieties, a recent mega-investment by InBev (Brazilian/Belgian brewer) in taking over Anheuser Busch in the USA is BIG news. This is not just a question of consolidation in the brewing industry (a phenomenon that has been taking place for some time in the US and other markets), but it's another huge indicator of the sophistication of Brazilian management talent, as well as money. Watch what happens to Bud and the rest of the Anheuser Busch line of products.

4) Major IT/Computer companies, such as IBM, Dell and others are all setting up or have already done so, major installations in Brazil to satisfy that market, now the 5th largest in the world for PC's. Naturally, this appears as a movement of capital and smarts from the north to the south, but in this writer's opinion, the effect is inverse: Brazil as a major consumer of IT products will begin shifting the way all types of companies set up and operate for the benefit of that country and its consumers and by extension, the rest of Latin America. Auto makers, as well, are redefining their product for Brazil, and when it comes to ethanol, the Brazilians have superior experience, cheaper prices and far wider abilities to plant, grow and process bio-fuels for the auto industry or other consumers. The U.S. and other countries have a lot to learn from the folks down south.

5) Oil companies and deep water drilling are going to find that Petrobras, the Brazilian national oil company is showing the way on how to find, drill for and extract major oil fields that are deep under the ocean, and deeper still under the rocks or sea bed that lies below thousands of feet of saltwater. For a U.S. that is nearly surrounded on three sides by ocean water, with vast petroleum and natural gas fields yet to be exploited, this Brazilian expertise will become a resource to learn from in the deep water exploration that will lead to new sources of energy off the shores of the United States. Hands down, the Brazilians are some of the world's best when it comes to this kind of oil field capability.

So, apart from the traditional exports that are famous from Brasil (coffee, bossa nova, soccer (futbol) and the Girl from Ipanema), the trends are strongly moving in ways that give Brazil a lot more influence while operating on the world stage. This will continue well into the future, and will continue to have significant impact on all parts of the "North". Stay tuned for more on this compelling topic.

If you or someone you know needs help with growing any part of your business in Latin America, including Brazil, contact me. It's what I do, and fluently in both Portuguese (the language of Brazil) and Spanish (the language of most of the rest of the region).

Thanks for reading. If you find this useful, please comment and share it with a friend. As they say in Brasil: "Chau!"

Building Emerging Markets

2008-10-27T17:52:00.000-07:00

The questions came via email from a senior executive interested in my thoughts about Latin America. “What do you think about the viability of software markets in Brazil and other parts of the region?” More specifically, he wanted to know my thoughts on the market for “on-demand applications” and specifically “talent management applications”.

Before commenting on those particulars, it might be helpful to provide context, since the world appears, at this writing, on the edge of an economic abyss, and many of the financial and commercial norms that we have known in the past several decades are changing so fast as to warrant some reflection. What is happening to emerging markets, especially Latin America? How are people coping and in what direction are these markets going? Do they rely on technology or other solutions that come from “the north”, or are they increasingly independent and uncoupled from the freezing-up of credit and other mechanisms in the northern hemisphere?

In brief I would say that it’s a mixed environment. Certainly a market as huge and self-sufficient as Brazil is a lot less concerned about the challenges faced in the U.S. and Europe. For them, in the words of a good friend in that country, they are accustomed to crises all the time, in fact it’s almost a way of life. Except for a jump in interest rates, recently, nothing much has changed since the “meltdown” began earlier this year in the U.S. and other world economies. In other words, to the extent possible, business people and others will take these situations in stride, find a way around the barriers they come up against, and move forward. Brazil has natural advantages, of course, including a widely diversified economy, a huge population of consumers that have learned to love a stable currency and credit facilities to enhance their life styles, and a government that has in the main been largely free-trade and hands-off with regards to managing that country’s economy.

Nonetheless, there is a definite impact in the stock markets and capital markets of these emerging economies, including Brazil. Stock markets are getting hit, currencies are weakening against the U.S. dollar and projects are being delayed to let the dust settle. Those countries that have enjoyed a run-up in commodity prices without building up a sufficient “rainy day” fund are going to find severe challenges when demand falls for their bread and butter products (soy, wheat, copper, beef, etc.). A notable example of this is Argentina, which continues to flail away at its economic challenges and has recently announced it will appropriate private pension monies to tide it over as major, sovereign debt comes due in the coming 12-24 months. Chile, on the other hand, has been very conservative about holding on to the tax revenues raised (in the billions of dollars) over the past several years for its many commodity exports (copper, fisheries, agricultural, etc.), and has an enormous reserve upon which to draw in this faltering market environment.

What do these macroeconomic issues have to do with “on-demand applications” and “talent management applications”? From the perspective of building an emerging market, creating a brand and gaining market share there is a correlation. Until such time as the value proposition and cost/benefit equations are fully embraced by consuming organizations of these offerings, it will be a long, hard road to create and sustain markets with these kinds of products. In particular it should be noted that the effect of an exporting company’s marketing, advertising and even customer success stories in the U.S. or Europe have very little impact on the folks in Latin America. Even as their economies have grown, and their imports and exports with other countries have expanded, Latin America remains focused on its own markets, its own communities and its own reference points. Until an “on-demand, talent management application” can really be proven as a must-have, versus a nice-to-have for day-to-day operations, there will be serious impediments to building that particular market. Likewise, until the “best practices” of performance reviews (see a contrarian view on this topic: here), succession planning and other talent management techniques become acceptable to Latin American firms and worth funding via technology, consulting or other investments, it will be tough for this kind of application to make progress in the short term. So, just as the consumer, generally, and many companies in the U.S. are cutting back on expenditures, and eliminating many nice-to-have items, so, too, consumers and corporate organizations in Latin America will do the same, having an impact on how U.S. and other non-Latin American vendors approach and serve these markets.

That being said, there are vendors that have on-demand offerings, fairly well-known, well-capitalized and willing to do the “blocking and tackling” it takes to create and build an emerging market like Brazil, Mexico or other nations in Latin America. Does this mean they can achieve short-term results? Yes, but not on the scale that Wall Street-driven firms in the U.S. or Europe might be hoping for. Does it mean it might take years to begin to get real traction in the region? Yes, it does. One particular “Software-as-a-Service” vendor I know admitted to six years of effort in Latin America, and they are just now (as of mid-2008) beginning to find their bearings and produce what they hoped for all these years. Who knows where they are today, in this “soft freeze” economy that seems to be delaying new hires, postponing projects and hoping that the first of the year will dawn warmly with positive GDP’s and operational budgets to gear up sales and profits once again in the region?

Regardless of the challenges, there will be those vendors who make a commitment to being “global” and put into action the teams and strategies necessary to serve and build emerging markets. With appropriate expertise, a clear-cut strategy and the executive talent to see the big picture in terms of time, resources, talent and commitment (yes, it’s often called hard work), Latin America and other emerging markets will adopt on-demand applications, just as they will adopt wireless broad band technology, or any number of other products and solutions. Want them to adopt talent management applications? Then, put the talent you have on the case, fund it appropriately, scale it on a time line that makes sense in Latin American terms (not Wall Street terms), and get to work. Need help figuring out what to do? Contact me: info@TopExec.org and I’ll be happy to help.

Thanks for reading this chapter of the Career Path Expressway™. Please share it with a friend, and subscribe to the blog to receive future postings. My regards to you, and safe travels as you approach emerging or other markets in today’s global economy.