Internet products and services are to enjoy boom growth, with sales almost trebling to $100 billion by 2000, according to a new survey by Zona Research.
Much of the big bucks will go to the Internet communications sector, which will see sales leap to $62.8 billion in 2000. Vendors of Internet and Intranet tools will see their market grow to be worth $107 billion within the same timeframe, according to the latest report by Zona Research. The total for Internet-related sales last year was $34.97 billion.
In its survey, 'Internet and Intranet: 1997 Markets, Opportunities, and Trends', Zona calculated that equipment such as routers and modems, as well as services from access providers, accounted for half of all Internet-related sales. But the researchers pinpointed bandwidth as the real moneyspinner for Internet suppliers in the future. ?We?ve always known that the bandwidth area is really where the big bucks were,? commented Zona president, Stephen Auditore.
The second largest area last year, with sales worth $7.74 billion, was the containment sector. This includes Internet servers and server software, site hosting and maintenance. Internet content accounted for sales of $3.40 billion. ?We see the content area growing substantially as more services enter the Internet space,? said Auditore.
The report also heralds the rise of ?info-keiretsu? - large, global combines of information companies that could either be centered around manufacturers and their suppliers, or financial institutions.
It lists five emerging info-keiretsu (named after Japanese holding groups) - Microsoft, Digital, Intel, and Compuserve with News Corp, using BT and MCI as a delivery mechanism; IBM and Netscape with Disney and Time Warner, with AT&T as the communications channel; Netscape with Cable & Wireless; Global One comprising Deutsche Telekom, France Telecom and Sprint; plus an emerging group surrounding NTT of Japan.
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