Electronic Data Interchange Market Teeters on the Brink of Transformation,IDC Says

FRAMINGHAM, Mass., September 20, 1999 -The Internet superhighway will take the electronic data interchange (EDI) market in a new direction. Despite revenue growth of almost 18% in 1998, the market is rapidly reaching full maturity and

is on the brink of transformation. This is a key finding from International Data Corporation's (IDC's) new report, Reinventing EDI: Electronic Data Interchange Services Market Review and Forecast, 1998-2003.

"The classic electronic data interchange paradigm has nearly saturated the markets and applications for which it has been best suited, and it is not so well suited to serve those markets representing the greatest growth opportunities," said Stephen Murray, research manager for IDC's Extranet Commerce Services research program. "Internet technologies have begun to change the market, and through 2003, they will be the primary driver of growth."

According to IDC, revenues for EDI network services will increase from $1.1 billion in 1999 to almost $2.3 billion by 2003. Internet EDI's share of transaction EDI revenues will jump from 12% to 41% during this same time frame.

"Many large enterprises maintain they are happy with their electronic data interchange, but their golden handcuffs will begin to chafe," Murray said. "The companies are inviting in new technology vendors, asking questions, and studying

the alternatives. They aren't sure what's next, but they want to know, and they are looking for direction."

The good news for traditional EDI vendors is that IDC believes they will have little difficulty incorporating and exploiting Internet technologies to ride the next wave of ecommerce growth.

IDC's report Reinventing EDI: Electronic Data Interchange Services Market Review and Forecast, 1998-2003 (IDC #B20036) forecasts EDI revenues and subscribers through 2003 by subscriber type and geographic region, examines Internet EDI

penetration of the classic EDI market, analyzes the EDI market in several key vertical industries, and presents vendor market shares for U.S.-based EDI service providers. To view the report's complete table of contents, please visit

http://www.idc.com and search for 20036. For more information or to order the report, please contact Sue Beauregard at 1-800-343-4952 extension 4774 or at sbeauregard@idc.com.

About IDC

International Data Corporation delivers accurate, relevant, and high-impact data and insight on information technology to help organizations make sound business and technology decisions. IDC forecasts worldwide IT markets and adoption and

technology trends, and analyzes IT products and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC is committed to providing global research with local content through more than 500 analysts in

more than 40 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, and the financial community. Additional information on IDC can be found on its Web site at http://www.idc.com.

IDC is a division of International Data Group, the world's leading IT media, research and exposition company.

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