Infrastructure, security key concerns in Latin America’s mobile technology boom, say executives from SAP, Cisco
Mobile technology for work and private life will define what’s to come for Latin America’s businesses and the rising middle classes America, however, there’s lots of work to do before everyone across the region has a smart phone in hand.
“Cell phone penetration in many Latin America countries is pretty high but when you get down to the smartphone level it drops off,” said Mark Crofton, vice president of mobility for SAP Latin America, at WorldCity’s Global Connections on April 27.
“In Colombia there’s 100 percent cell phone penetration for a more or less 60 percent banked population,” he added. “Forty percent [of the population] is unbanked, that’s an opportunity that doesn’t exist in the U.S. and there’s a huge opportunity to get people into the banking system through mobile payments.”
Those kinds of untapped markets are why more than 1,100 multinational companies have offices in South Florida, and many of them are increasingly relying on the array of smart phones and tablets to do their day-to-day business.
“In Latin America we see huge growth, especially in smart phones, and that is creating a lot of traffic demand,” said Oscar Fontalvo, director of international marketing for Level 3. The company purchased New Jersey-based Global Crossing in October 2011 year for about $3 billion, acquiring a presence and data centers in Miami and across Latin America.
With the new expectation that people will be able to conduct nearly every aspect of their business on a mobile device comes the ever growing need for security.
“We have 15 data centers and we offer managed security services,” Fontalvo added. Additionally Carlos Tolares, head of Latin America business development for Cisco Latin America, said the company has a security business, geared particularly for wireless technology, alongside its business offerings.
All in the discussion seemed to be in agreement that mobile video technology is going to be the core of any mobile business strategy.
“I remember when I got into Cisco we used to have a lot of telephone systems or the video conferencing solutions, but for the last six years we’ve been using telepresence solutions,” Tolares said. “Four years ago I used to travel 80 to 90 percent of my time, with the technology I’ve reduced it to 50 percent and my projection is that I can get it to 20 percent in the next couple of years.”
More and more professionals using mobile technology in increasingly complex, data-demanding ways, however, is forcing companies like Level 3 to continually invest in more infrastructure.
Even though governments have a hand in pushing Internet access to as many corners of their countries as possible, Latin America still has a ways to go, particularly on the commercial side.
Philip Vandervoort, head of business and marketing for Microsoft Latin America, asked what effect low levels of technology employment and fragment outdated networks will have on the region’s businesses.
Global Connections is one of seven event series organized by WorldCity to bring together executives on international business topics. The series is sponsored by Florida International University’s graduate school of business, Waterford at Blue Lagoon, Comcast and the Miami Marlins. The next Global Connections is set for May 27.