ICGE down but not out by a longshot!......read this:$7.3 Trillion In B2B E-commerce By 2004 - Report
January 26, 2000: 2:44 p.m. ET
STAMFORD, CONNECTICUT, U.S.A. (NB) -- By Steven Bonisteel, Newsbytes. Worldwide business-to-business (B2B) e-commerce transactions via the Internet will weigh in at nearly $7.3 trillion by 2004, according to analysts at Gartner Group Inc. [NYSE:IT], who said a new category of online businesses they call "e-market makers" are helping to transform the purchasing habits of bricks-and-mortar companies at breakneck speed.
Leah Knight, principal analyst for Gartner Group's e-Business Intelligence Services, told a news conference today that the e-market makers exploded on the Internet in 1999 and encompass vertically oriented electronic marketplaces such as the Chemdex Corp. [NASDAQ:CMDX] (http://www.chemdex.com ) destination for laboratory supplies as well as broad-based B2B outfitters such as Commerce One Inc. [NASDAQ:CMRC] (http://www.commerceone.com ).
"The B2B explosion is imminent, fueled by a combustible mixture of investment financing, (information technology) spending and opportunistic euphoria that is being funneled into start-ups and bricks and mortars' e-commerce initiatives," Knight said. "Collectively, they will drive short-term economic disruption but long-term business efficiency across industries and geographies."
Knight called the rush to B2B e-commerce "the most exciting and significant business and economic phenomenon of our time," and added that she predicts the e-market makers to grease the skids for about 37 percent - or $2.7 trillion - of all B2B e-commerce by 2004.
"Although several of these players have been around for several years, 1999 was really the year of the e-market maker revolution," Knight said. "That was the year of their 10-fold expansion. There were about 30 of these players I was aware of in January, and now our list exceeds 300.
"And these players are being wooed and pursued by some of the most- impressive investment banks and venture capitalists," she said. "By the sheer volume of funds that have been poured into these companies, they are going to cause a significant revolution and an explosion in business-to-business e-commerce."
She said total transactions of nearly $7.3 trillion online are still just a slice of what she estimated would be a grand total of $105 trillion in exchanges globally by 2004 when traditional methods of arranging business-to-business commerce are factored in. But she said the move to Internet-based commerce between businesses and within supply chains will profoundly affect bricks-and-mortar operations.
Ramping up to 2004, she said, the worldwide B2B market online is expected to account for $403 billion worth of transaction in 2000, $953 billion in 2001, $2.18 trillion in 2002, and $3.95 trillion in 2003.
Knight said e-market makers will have a critical but subtle impact on transactions that flow through what she called the "sell-side" initiatives of bricks-and-mortar companies - approaches such as extranets, B2B Web storefronts, electronic data interchange (EDI) flat-file transfer over the Internet, and related e-commerce activity allowing a seller to leverage Internet Protocol networks as a channel to its buyers.
"These brick and mortar sell-side initiatives will fuel the B2B e- commerce fire significantly, as e-market maker valuation envy and Wall Street pressures drive brick and mortars to accelerate sell- side e-commerce adoption," she said. "Valuation envy has already sped up e-commerce adoption in the chemicals and electronics components industry, where traditional brick and mortars are under pressure to keep up with fast-moving virtual competitors."
Reported by Newsbytes.com, newsbytes.com
(19990126/Press contact: Allison Haines, GartnerGroup, 203-316-6216/WIRES ONLINE, BUSINESS/)
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