nowEurope

Vienna’s position as CEE’s ICT capital has suffered quite a blow by IBM’s announcement to move its CEE headquarters to Prague. Beware: I love Prague, I live there, but the decision’s wording “to move growth market activities to growth markets” sounds rather shallow if applied to the Czech Republic. Sure the country has growth potentials that the EU15 have lost long ago, but then why not move IBM CEE to Ukraine or Russia right away?

The Czech Republic is not what one would largely classify as an Emerging Market – not anymore. High tech salaries are catching up to international standards, skilled staff is scarce and office rental and energy costs are far above Vienna’s level. To satisfy the requirements of a growing market IBM Czech Republic is well equipped – that purpose does not require the transfer of a regional headquarter. Vienna is simply the best location for multi-market management in the region. Prague and Brno can offer much more in terms of R&D and technology transfer, Vienna has been lacking on this and is, by the way, about to start a campaign to increase ICT R&D activities (on a very small scale, I must add – nothing comparable to its tourism budget).

There are most probably other reasons behind IBM’s decision: A) the Americans have a crush on Prague and some company high shot wants to have his coffee in Slavia café rather than at Vienna’s business hot spot Landtmann, B) for Americans, a European map is simply a patchwork of tiny units which especially in the case of Vienna, Prague and, say, Budapest, are easily exchangeable, and – and that is the main thing – Austria has simply failed to establish itself as a premium location for the high tech industry.

It is my old lament – the Yodeling and Opera Balling nation still seems to live on Sacher cakes, Herminators and the New Year’s Concert. The success of Austrian banks, insurance companies, numerous industries and the activities of the multinational ICT sector in CEE is simply not being marketed. Austria could easily have a Sweden-Finland-Canada status if the political cast that rather indulges in wine&waltz would finally deign to descend to the profane world of bits&bytes and recognise the achievements of the country’s computer world.

Let’s wait and see until IBM gets enough of Smetana&Pilsner and moves their CEE staff to Dubai, as Computer Associates did a few years ago - and failed, at least according to the industry’s yellow press.

For the Austrians: Years ago I wrote in an editorial that the country very often has its mouth wide open on things it should rather shut up on, and keeps silent on its real highlights. Obviously this observation is still correct.