IDC: Australian Technology Lag a Good Thing

SYDNEY (01/10/2000) - the technology race, but an International Data Corp. (IDC) analyst says that could be a blessing in disguise.

IDC analyst Graham Penn said the U.S. would continue to use Australia as a test market for technology initiatives in 2000.

"Things can be tried out here safely before they are rolled out in the U.S.," he said.

Consequently, Australian technology companies would benefit from the experience of U.S.-funded initiatives, resulting in new Australian products that would be locally competitive with the U.S. product, he said.

"There are many examples of U.S. dominance not necessarily translating to dominance here because people (here) have been able to adjust their strategies along the way to achieve a higher position than the equivalent U.S. service," Penn said.

Penn also said Australian Internet companies could learn from the restructuring of many U.S. "bricks and clicks" companies expected this year.

According to IDC's annual Predictions report for 2000, this year will see the death of pure ".com" companies. The report said it would become clear to dominant U.S. companies that a strong presence would be needed both online and not online.

"We won't follow slavishly exactly what's previously happened in the U.S. because we'll learn," Penn said.

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