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Technology Stocks : Net Perceptions, Inc. (NETP) -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (1012)	6/8/1999 5:19:00 AM
From: stockman_scott	Read Replies (1) \| Respond to of 2908

Companies are spending BIG BUCKS on e-commerce web sites -- and the spending is projected to go up. Check this out... <<E-Commerce Site Price Tag Is $1 Million By By Kevin Merrill San Jose, Calif. 7:31 PM EST Thurs., May 27, 1999 --Varbusiness.com What does $1 million buy today? An enterprise e-commerce website, apparently. That price tag is expected to rise 25 percent in each of the next two years, according to Gartner Group, which conducted the survey. No customers said they were "on budget" for their projects. Survey participants included 20 midsize-to-largecorporations launching a first-phase e-commerce website focused on selling goods or services -- either through business-to-business or business-to-consumer channels. The participants, however, said they did not get everything they needed from their e-commerce application vendor. In fact, customers on average used two or more external companies, usually including a nationally recognized media company and a local systems integrator. The survey found the price of sites ranged from $350,000 to $2 million, and the goal behind the projects ranged from getting something up cheaply and quickly to creating first-class sites to achieve competitive differentiation. As expected, the largest costs were labor-related, and represented about 79 percent of expenses. On average, it took five months for an e-commerce site to be built, although some took up to a year to launch. In addition to labor, the other costs were related to software (10 percent) and hardware (11 percent). The report identified three classifications of e-commerce sites: * $300,000 to $1 million to "get on the map." This creates sites that are adequate, but functionally behind most industry participants, according to Gartner Group. * $1 million to $5 million to "run with the pack." This amount of spending creates sites that are functionally equivalent to most industry participants. * $5 million to $20 million to achieve "market differentiator" status. >>