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Faster, Better, Smarter, Cheaper - Not! IDC Reveals What to Expect at Internet World
PR Newswire - December 08, 1997 16:25
%CPR %MLM V%PRN P%PRN
Less is more, but don't expect an end to the turmoil!
NEW YORK, Dec. 8 /PRNewswire/ -- This week's Internet World is expected to
attract more than 60,000 business professionals looking for an answer to a
simple question: How can I make the Web work for me?
Coincidentally, hundreds of Internet product providers are ready with a
promise of the answer. Their products promise a faster, better, smarter, and
cheaper Internet for businesses and consumers and more market value for
investors and venture capitalists.
International Data Corporation's Internet@IDC, the largest market research
program covering the global Internet, has combed through the promises and user
needs. New research conducted by Internet@IDC concludes the Internet is
simply NOT THERE YET!
Signs of the 'Net's immaturity abound. IDC research reveals, at the end
of 1997, the Web will have only achieved a fraction of its promise. For
example:
-- There are only slightly more than 50 million Web users worldwide -- a
fraction of the 175 million who will be there in 2001.
-- Internet commerce is only just topping $10 billion -- a mere shadow of
the $220 billion marketplace it will be in five years.
-- Though large corporations have taken to the Internet in a big way, only
21 percent of the seven million U.S. small businesses have Internet
access.
Another sign the 'Net is still in its infancy -- with much work still to
be done -- is the cooling Internet initial public offering (IPO) market, once
the hottest place to invent a company.
"Simply put, as the Internet gets applied to real business requirements,
technology purveyors cannot get away with selling 'concepts' in place of
products," said Michael Sullivan-Trainor, program director, IDC worldwide
Internet research. "Too many high-flying IPOs over the past several months
have fallen to earth as promises of product glory are replaced by lack of
profits."
According to IDC, the bulk of the 140 technology IPOs this year have been
driven by Internet business opportunities, generating more than $6 billion in
market value. More than 40 technology companies, many Internet-based, are due
to launch IPOs before the year's end. The 180-plus deals in 1997 compare with
more than 220 deals last year in the sector. Hot Web prospects are US Web,
launched Dec. 5th and RealNetworks, launched last month at 12 1/2 and trading
55 percent higher at 19 3/8 (as of Dec. 4th).
The massive consolidation of ISPs is also a sea change in the market that
will bring more advanced networks and network services to support the
Internet's growth. These consolidations include the combination of
Worldcom/UUNet with MCI, and the acquisition of Genuity by GTE.
Other infrastructure consolidation includes upheavals in the security
industry with Network Associates acquiring PGP and Axent buying Raptor. Last
year's darling, "push technology" has become this year's repositioning as
information management.
Doubt exists as well about what the right desktop platform will be with
NOIS (Netscape, Oracle, IBM, Sun) battling Microsoft and Intel on the Network
Computing frontier. Java can't be ignored, but it can bog down in
inter-company battles.
So despite the new applications, development tools, monitoring and e-mail
offerings, services and security products, the Internet is very much a "wired
marketplace" under construction. So those 60,000 strong seekers of solace at
Internet World will come away with more tools to do it themselves -- but no
final payoff on the promise of a simple, fast, cheap Internet they can call
their own.
About IDC
Headquartered in Framingham, Mass., International Data Corporation
provides IT market research and consulting to more than 3,900 high-technology
customers around the world. With a global network of 300 analysts in more
than 40 countries, IDC is the industry's most comprehensive resource on
worldwide IT markets, products, vendors, and geographies.
IDC/LINK, an IDC subsidiary, researches and analyzes the home computing
market, leading-edge technologies in telecommunications and new media, and the
convergence of computing and consumer electronics.
IDC's World Wide Web site (http://www.idc.com) contains additional company
information and recent news releases and offers full-text searching of recent
research.
IDC is a division of International Data Group, the world's leading IT
media, research and exposition company.
NOTE: All product and company names may be trademarks or registered
trademarks of their respective holders
SOURCE International Data Corporation
/EDITORS' ADVISORY: IDC analysts will be participating in several Internet
World panel discussions. For more information, please contact Hillary
DeMello.
Mr. Sullivan-Trainor and Lew McCreary, editorial director, CIO
Communications, will be in New York City Dec. 10 and 11 and will be available
for interviews on the cooling Internet IPO market. To arrange an interview,
please contact Hillary DeMello or Susan Watson, CIO Communications, at
508-935-4190./
/CONTACT: Hillary DeMello, 508-935-4282, hdemello@idcresearch.com or
Elizabeth Freedman, 508-935-4764, bfreedman@idcresearch.com both of IDC/
/Company News On-Call: prnewswire.com or fax, 800-758-5804,
ext. 114009/
/Web site: idc.com
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