Texas: Taxes and Infrastructure for New ICT #gov20

Texas, Taxes and The Cloud

Texas, Taxes and The Cloud

Texas made some decisions about ecommerce and taxes that may cause some issues for the way new ICT is rolled out worldwide.  I am torn on the decision itself, but want to call out the discussion as one in which governments need to engage.

This has been a hot topic for years.  When the Internet was nascent it was in need of positive tax treatments to encourage its development.  They received much of that and the world has benefited greatly.  While it has absolutely become a huge additive to our global economy, the need for subsidization may indeed have gone away.

However, the cloud is now nascent and we cannot ignore the potential application of decisions like those in Texas could adversely affect the tax treatment of cloud providers across the world.  Much more than the Internet, the cloud is a platform upon which a multitude of innovations could ride.  Much future growth could come from the viable competition of multiple platforms riding on the cloud.  And tax treatments of such services are an important component to how well these new ideas will be able to come to fruition in a challenging economic environment.

So, the question is, should Governments create an ongoing exemption for the cloud or hammer out the details about where revenue is realized so that companies can rely on something when making deployment decisions?

Related posts:

South Africa: Super Group Holdings Understands Government 2.0

Super Group - Leading the Way to Government 2.0 in Africa and Worldwide

Super Group – Leading the Way to Government 2.0 in Africa and Worldwide

 

 

Just finished a briefing for the executives at Super Group Holdings in South Africa and was happy to see such great alignment between a private company and the Government customers they serve.

We had deep conversations about the nature of the Governments worldwide as a market.  In particular I always cover off on the enormous challenges that face our customers in terms of environmental degradation, economic instability, structural challenges with social insurance, aging populations and the like.  Sometimes my discussions are met with  deep concerns about addressing such a volatile marketplace – but not with Super Group.

They came seeking insight into how they can make their offerings to governments better.  How they can address citizen concerns contemplated inside their own business processes.  How they can embrace greater diversity in government vendors and still have a robust and growing business of their own.

My normal briefings are directly to our Government customers, so it was great to extend that to the vendors that they use.  And it was impressive to see such a focus on citizen services from them.  In particular the co-creation of applications piqued their interest as well as leveraging the cloud to lower internal costs to address revenue concerns in their customers.

For Government as a Platform to work, we need all types of partners involved in the solution and it is great to see Super Group leading that charge worldwide.

Related posts: