It seems to me that nobody has yet figured out a viable business model for the Internet and Web. Tens of thousands of companies are struggling, so far without success, to come up with formulae that can consistently generate profitable revenue streams. While small-, medium- and large-size companies all sense that there must be a pot-of-gold at the end of the Internet/Web rainbow, nobody seems to have found it yet.
Of course, the Internet hardware/software and bandwidth suppliers are enjoying explosive and very profitable growth.
Clearly there is a huge economic force driving the growth in Internet traffic. I think that the combination of direct cost savings and productivity improvements which business and government are generating by using Intranet and Extranet communications facilities is providing the economic fuel for the spectacular growth. My small ($20 million) company estimates that we're saving >$500,000 per annum in telephone, FedEx, UPS, travel, support, marketing, etc. by using the Internet and by providing our customers and prospects immediate, direct, on-line access to technical information and data.
I don't know of any company which has managed to develop a viable model based on the home market --- judgement is still out on AOL which keeps changing its model. |
