IDC: Internet economy just beginning

In just a few years, observers will look back at today's e-commerce as nothing but the "primordial ooze" necessary to develop the full-blown economy that is bound to emerge over the Internet, an analyst at an IDC conference on the Internet economy said in the keynote presentation.

There will be many losers along with winners in the Internet economy of the near future, as accelerating growth erases present-day conventions, said Frank Gens, IDC senior vice president for Internet research, citing a new IDC survey of 650 business and IT executives.

"It's pretty clear that the battle for Internet economy has just begun," said Gens. "The guys who caught the wave of the first paradigm (of the Internet economy) may wind up being buried by the guys who come behind."

A number of present-day trends reflect the hyper growth of e-commerce, he said. Among them are the following:

- Internet users will become Internet buyers. Users will increase from 160 million in 1998 to 500 million in 2003, the survey showed. More dramatic growth was seen in commercial activity on the Internet, with purchases growing from $US50 billion in 1998 to $US1.3 trillion in 2003.

- Worldwide, just 4 per cent of the population used the Internet in 1998, but by 2003, 11 per cent will have signed on.

Rapid growth will create other challenges for Internet businesses, Gens said. "We've seen skunkworks and spinoffs, but few (Web sites) have been fully integrated within the business organisation," he said. "E-business not integrated at the core business will be in trouble."

And the myth that Internet sites can stand to lose money as they gain market share will end, as companies demand and receive profits, Gens said. Two-thirds of businesses polled said they expect to make a profit by 2001.

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jack McCarthy

PC World
Show Comments

Essentials

James Cook University - Master of Data Science Online Course

Learn more >

Mobile

Victorinox Werks Professional Executive 17 Laptop Case

Learn more >

Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >

Exec

Budget

Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?