This news should help the net sector today:Cisco Releases Study Measuring Jobs and Revenues Tied to the Internet Economy;
07:12am Internet Economy Tied to
Internet Ecosystem of Networked Businesses & Customer Business Editors/High Tech Writers
WASHINGTON--(BUSINESS WIRE)--June 10, 1999--The Internet Economy
generated more than $300 billion in U.S. revenue and was responsible
for 1.2 million jobs in 1998, according to a University of Texas study
released by Cisco Systems, Inc. today.
The findings are the most comprehensive measurement of the
U.S.-based Internet Economy to date, and will be updated every three
months at www.InternetIndicators.com. The study was done in
partnership with the University of Texas' Graduate School of Business
and the Center for Research in Electronic Commerce.
The study also found that Internet e-commerce is growing at a
much faster rate than expected; that Internet workers are 65% more
productive than non-Internet workers; and that companies with
significant Internet revenues have a combined market value of over
$2.4 trillion. In 1998, for example, total e-commerce exceeded $102
billion for U.S. based-companies; the average revenue per Internet
employee is $250,000 vs. $160,000 per non-Internet business employee;
and the top 20 companies measured have significant Internet-based
revenues that have a combined market value of $2.4 trillion.
"The Internet Economy continues to create unprecedented growth
opportunities for people, companies and countries on a global basis,"
said John Chambers, president and CEO of Cisco Systems. "For the first
time, this study measures real jobs and economic growth directly tied
to the emerging Internet Economy. When you consider the economic
ripple effect that these jobs and economic growth drive worldwide, I
believe the actual Internet Economy will usher in an Internet Century
of profound and long-lasting change for business and people."
"If the Internet is going to impact future world economies, it's
imperative to measure its real impact today," said Anitesh Barua,
University of Texas At Austin, Graduate School of Business, Center for
Research on Electronic Commerce. "We are pleased to partner with Cisco
to develop the first Internet Economy Indicators based on in-depth
interviews with more than 3,000 companies."
Rise of Internet Economy Tied to Internet Ecosystem
In a Washington, DC speech, Cisco Executive Vice President Don
Listwin said the rise of the Internet Economy can be tied to an
emerging "Internet Ecosystem" -- a new business model for
Internet-connected businesses to serve Internet-connected customers.
Companies in an Internet Ecosystem use the Internet as a
competitive advantage to better manage operations, and extend market
reach, while creating value for their customers and the entire
ecosystem.
"Companies that embrace the Internet Ecosystem business model
will thrive in today's Internet-centric world," said Listwin. "This
new business model leverages hundreds of billions of dollars in
Internet infrastructure, an asset available to any company in the
Internet Economy."
Listwin also introduced the Internet Quotient (IQ), a qualitative
measurement of a company's potential to be successful in the Internet
Economy. The Internet Quotient is a blueprint for success in the
Internet Economy.
The Internet Economy Indicators
The findings of the Internet Economy Indicators was compiled by
interviewing more than 3,000 U.S.-based companies that generated all
or part of their revenues from Internet products or services. The
scope of the research was limited to companies with revenues directly
from the Internet. It did not include companies generating products or
services from the Internet companies (for example, professional
services or utilities). The data was compiled using research reports
from research companies, 10-K's, product literature and Web sites for
the top 10 percent of the largest companies.
Development of the Internet Economy Indicators was underwritten
by Cisco Systems. They are derived from measuring Internet related
revenue and job growth in four layers of the Internet Economy:
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-- The Internet Infrastructure - i.e. Internet backbone providers,
ISP's, networking hardware/software, PC manufacturers, security
vendors, fiber optic makers (Cisco, Intel, AOL).
-- The Internet and Network Applications Infrastructure - i.e.
Internet consultants, Web server software and other Internet
applications, Multimedia applications, Web development software,
search engine software, online training (Microsoft, Sun, IBM).
-- The Internet Intermediary - i.e. online travel agents/brokerages,
content aggregators, portals/content providers, Internet ad
brokers (ETrade, Yahoo, Cnet)
-- The Internet Commerce Indicator - i.e. online product sales,
fees/subscription-based companies, online advertising, online
travel providers (Amazon, eToys, WSJ.com).
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The Internet Economy Indicators, to be measured on a quarterly
basis, are the first phase of the Internet Economy Index(TM) expected
to be released sometime next year. The Internet Economy Index will
contain several indicators, in addition to jobs and revenue, and will
present a quarterly snapshot of the Internet's economic impact. The
findings of the report can be viewed at
internetindicators.com.
This announcement and associated presentations can be viewed via
Webcast at cisco.com.
About Cisco Systems
Cisco Systems (Nasdaq:CSCO) is the worldwide leader in networking
for the Internet. Cisco news and information are available at
cisco.com.
Note to Editors: Cisco, Cisco IOS, Cisco Systems, the Cisco
Systems logo are registered trademarks of Cisco Systems, Inc. in the
U.S. and other countries. All other trademarks mentioned in this
document are the property of their respective owners.
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CONTACT: Cisco Systems, Inc.
Abby Smith, 408/525-8548
absmith@cisco.com
Mary Thurber, 408/526-8893 (Investor Relations Contact)
mthurber@cisco.com
KEYWORD: CALIFORNIA DISTRICT OF COLUMBIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED
INTERACTIVE/MULTIMEDIA/INTERNET
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Jun-10-1999 05:22 GMT
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