The worldwide Internet economy will hit $1 trillion by the end of 2001 and reach close to $3 trillion by 2003, according to a new report by IDC.
Anna Giraldo Kerr, a senior analyst for the market research firm's Internet and eCommerce Strategies research programme, said that the drivers behind boom included ecommerce, investment in technology, and an increase in the necessary infrastructure.
And she explained that investment in technology products and services to strengthen the infrastructure, accomplish critical mass and introduce online users to ecommerce had certainly helped the Internet economy develop.
For example, for every dollar spent on online sales in 1998, companies plowed $0.93 back into building an ecommerce infrastructure.
Frank Gens, senior vice president of IDC's Internet research unit, explained: "Everyone praises the benefits of Internet commerce, but few understand the size of the investment required and fewer still understand that technology infrastructure is just a part of that investment."
But Giraldo Kerr said: "Non technology spending is slowing catching on and marketing and sales functions, along with content creation, will take a lead role in enhancing the Internet experience and stimulating Internet commerce" in future.
Although technology investments accounted for 52 per cent of worldwide Internet spending in 1998, IDC expects non technology investments to surpass technology investments for the first time in 1999. And by 2003, technology investments' share of expenditure will have decreased to 39 per cent.
IDC also reported that worldwide PC shipments are up. PC sales in the third quarter are expected to grow by 24.8 per cent over the same period in 1998 driven by robust global consumer demand for cheap products.
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