I am most grateful for the trouble you took in examining my data critically. In your earlier e-mail you pointed out that I vastly understated the Australian participation in information industries. I do not believe that is the case.
I have examined the list you so kindly provided, which added up to an impressive $US15.653 billion. However, almost all of this money is for telephony, not for IT.
To check for any omissions I started my examination at the top of your list. Here is what I found:
1. Telstra (which accounts for 72 per cent of the dollars in your listing) is classified as SIC 481 (Telephone communications), SIC 4822 (Telegraph and other messages), SIC 4841 (Cable and pay TV).
Please note that in the subject paper I made amply clear that my definitions covered only the following sources of investment quality goods and services: SIC (Standard Industrial Classification) codes 357 (Computers & Office Equipment); SIC 367 (Electronic Components & Accessories) and SIC codes 737 (Computer Programming, Data Processing and Software).
Telstra revenues are made up mostly from telephony services!
2. AAPT, your second highest company, is in SIC 4812 - Radio telephony services.
3. Tech Pacific is unlisted (please note I can account only for listed companies).
4. One.tel Limited - unlisted
5. Harvey Norman Holdings is a peculiar entry. It is listed as "patent holders" and "retailers". I cannot account for revenues in a consolidated subsidiary.
6. Ipex - unlisted
7. There was no AAP, but I found an Australian company by name of AAPT. It is in SIC 4812 - radiotelephony, which again does not count for comparative purposes.
8. Candle Australia - unlisted.
9. Qantas Information Technologies - unlisted. Only the parent company (aeroplane transportation) is listed. Again, I cannot account for expenses that are consolidated into the financial results of the parent company.
10. AAG Technology Services - unlisted.
Having thus accounted for almost 90 per cent of your listing I had to conclude that we used different criteria for making an assessment of vendor power.
Hope this is responsive to your inquiry.
Again, many thanks for your observations - it is a delight to see that it is possible to conduct a review of my writings on a factual basis!
Paul Strassmann
PS: Please note that there is about $US600 billion of IT services embedded within the cost structures of individual US companies - some of which operate an arm's-length IT subsidiary. I have not included any of those revenues in any of the comparisons. What you see in my analysis is an analysis of IT investment-creating companies that increasingly compete in global markets with their technologies.