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January 30, 2001



Survey Wrap-Ups



Summaries of recent survey findings on breaking industry issues.

> A World Information Technology and Services Alliance study in cooperation with IDC found that worldwide spending on information and communication technology (ICT) totaled more than $2.1 trillion in 1999; the study predicts that this amount will grow by 50 percent by 2004.

> A Meta Group survey of 300 companies shows that corporations expect to increase investments in enterprisewide customer relationship management (CRM) strategies by 75 percent in the coming year. Nearly 80 percent of organizations report success with their CRM programs and projects, but findings also show that 76 percent of large corporations have not yet fully integrated CRM programs into their e-commerce initiatives.

> Forrester Research Inc. predicts that antitrust problems won't seriously hinder e-marketplaces for the next three to five years. But the eventual shakeout of e-marketplaces and the Internet's restructuring of business over the long term will create new legal uncertainties for businesses, policymakers, and regulators.

> An Active Research Inc. survey of 539 individuals found that 66 percent claimed their online shopping behavior would decrease if the government taxed Internet sales. The survey also found that significantly more women (71 percent) than men (64 percent) would decrease their online shopping. This finding is consistent with other findings by Active Research showing that women tend to be more price sensitive than men when shopping for high-priced items.

> A Forrester Research brief predicts that U.S. license and subscription fees for supply network applications and services will hit $6.2 billion in 2005, forcing vendors to redefine offerings because Internet-resident supply network services are surpassing supply chain applications in popularity.

> The need for technical systems and servers is rising. According to IDC, worldwide shipments will increase at a compound annual growth rate (CAGR) of 13.5 percent, from about 60,000 in 1999 to more than 113,000 in 2004. Revenue will increase at a 9 percent CAGR, from $5.6 billion to $8.6 billion during the same time.

> The demand for accelerated delivery of online operations, such as content, transactions, and applications, to Web users has created a lucrative space for content delivery networks. According to IDC, the United States content distribution market will increase at a CAGR of 150 percent, from $10 million in 1999 to nearly $1 billion in 2004.

> E-commerce is becoming popular in Mexico: An Asociación Mexicana de la Industria Publicitaria y Comercial (AMIPCI) survey of 2,000 Mexican Web users found that 36 percent of the respondents had made an online purchase in the previous 90 days, and some 55 percent of this group indicated a probability that they would purchase online in the next 12 months.





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