Chris J Powell

How big is the Internet???

I love my PC, my Tablets and Laptop/Netbooks that I have at home.  The ability to be able to find any information that I want and dive level the digital divide is huge but one thing that I did not realize is just how much of an impact it has had on the world.  Now we can thank Al Gore for inventing the Internet (or did he) as we fire up a browser and look for our daily news, blogs, games and social connections but what is the real impact that the expansive World Wide Web has had on all of us?

We can look to the impacts of the Public Cloud and the IaaS (Infrastructure as a Service) providers out there as the most disruptive class of technologies to the modern IT Department as the shift moves from needing to know a little about everything but the Internet has done so much more to each and every connected person on the planet.
In the recently released McKinsey Report there are some key factors that came out of the findings:

The Internet accounts for 3% of the Global GDP (bigger than agriculture or energy)
The Internet represents 20% of economic growth in the past 5 years
For every job lost because of the Internet, 2.6 new jobs are created

The report focused on 13 countries that account for 70% of the Global GDP and the focus was on several factors.  I was quite impressed with the depth and quality of information contained within and I was equally impressed when I did a little homework on the Research Firm the conducted the Study.  McKinsey & Company has been around since the 1920s and now boasts 99 offices around the globe.

“To measure the impact of the Internet on the economy, we looked at both expenditures and supply, following three original, quantitative, and complementary approaches:

  • A macroeconomic approach using national accounts to calculate the contribution of GDP via a classical      macroeconomic spending approach, where the Internet economy is simply the sum of Internet consumption (service, access, e-commerce, etc.), private investment, public expenditure, and the trade balance in Internetrelated goods and services
  • A statistical econometric approach analyzing the correlation between Internet maturity and a country’s GDP per capita growth, leveraging the theory of endogenous economic growth
  • A microeconomic approach, analyzing the results of a survey of 4,800 small and medium-sized businesses in 12 countries we studied”

The stunning charts and graphs that demonstrate the impact that the Interwebs have on our daily lives are both impressive and just a bit scary that the bits and bytes of what started out with message boards and the early connections in the early 1990’s to what now controls a considerable amount of EVERYTHING we as people and the companies we work for do!

The link to the full report is above, I encourage you to download and read it…there are some impressive insights and information within it.

Have a great day,

Chris J Powell

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