GLOBAL DEMAND FOR INFRASTRUCTURE, CONNECTIVITY, AND WEB-Based Commerce Spurs Opportunities for IT Vendors, IDC Study Finds
Report Examines Where Opportunities Lie for IT Vendors of Internet Products and Services FRAMINGHAM, Mass., July 21 /PRNewswire/ -- Internet deployment varies greatly across countries, industries, and size classes. Despite these different paces, market players continue to grow in number and the competition becomes fiercer as each day passes. According to a new report published by International Data Corporation, this landscape provides a wealth of opportunities for IT and communications vendors across the globe. Burgeoning Internet activities in Asia/Pacific, particularly within the People's Republic of China, dictate the need for stronger infrastructure. In Western Europe, especially in France, the demand for increased connectivity is urgent. In Japan, Australia, Scandinavia, and the United States, users are clamoring for more proficient Web-based commerce. These opportunities pose unique challenges for IT suppliers around the world. IDC's new report, Varied Internet Deployment Spells a Variety of Vendor Opportunities, provides insight into these challenges by examining the pace at which regions are accessing the Internet and the World Wide Web, and how quickly they are proceeding in their implementation of home pages. This report looks at who is hosting these pages and which internal division is responsible for content. In addition, the research reveals which activities are being conducted on their home pages (i.e., customer service and support, product information, sales transactions). This study addresses these questions through an analysis of Internet- specific data collected in the 1998 Global IT Survey, a survey consisting of 15,000 interviews across 13 countries worldwide. The countries surveyed include the United States, France, Germany, Italy, Netherlands, Scandinavia (including Sweden and Denmark), the United Kingdom, Australia, PRC, India, Japan, Korea, and Malaysia.
"While Internet adoption continues to snowball worldwide, differences in the magnitude of adoption level among countries present wide and varying opportunities for IT vendors," said Nicole Comiskey, research analyst, Global Research Services. "By closely examining what IS managers say about the present and predict about the future, vendors can gain the necessary understanding to capture these markets."
For example, of those countries surveyed, those in Asia/Pacific now lead the world in Internet connectivity, with nearly 63 percent of sites claiming access to the Internet/World Wide Web. This lead is due in large part to Australia, which ranked at the top in terms of access, and Korea, which placed third. In last year's Global IT Survey, Korea showed high current and anticipated Web access plans. This finding seems to support Korea's previous claims in the 1997 survey to implement plans that would increase access.
A closer look at home page usage shows nearly 28 percent of those surveyed have developed a home page at their companies. In Scandinavia, which is recognized as a region of early adopters, more than 62 percent of companies have a home page. This is due in large part to the unparalleled high number of small and medium sites that host a home page. The United States experiences a strong home page presence, but within the larger sites. Results obtained through the survey point to an increase in home page usage that tends to rise with the size of the site. Home page penetration also fluctuates across the different vertical industries surveyed, with higher penetration in education, banking, process manufacturing, insurance, other finance, and government.
"Ultimately, the vendors that understand the individual market dynamics and can tailor their strategies accordingly, will reap the success available from these opportunities," said Comiskey.
Varied Internet Deployment Spells a Variety of Vendor Opportunities (IDC #B16248) can be purchased by contacting Cheryl Toffel at 800-343-4952 or by e- mail at ctoffel@idc.com. For additional information about IDC's Internet Research, please contact Elizabeth Freedman at 508-935-4764. To receive details on the Global IT Survey and related special information services, please contact Lisa Bloom at 508-935-4236.
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.
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