IDC Issues Annual Predictions For The Asia/Pacific Information And Communications Technology Market

NORTH SYDNEY – JANUARY 2, 2001 – In 2001, eBusiness will continue to be the driving force behind spending on information technology hardware, software, and services in the Asia Pacific region. The bulk of investment in online activities will be made by brick-and-mortar businesses and the Internet will weave its way back into the back-office.

 

"The reason is simple: the battle is already engaged", said Piyush Singh, Vice President and Managing Director, IDC Asia Pacific. "For every dot-com that competes with an established business, there are a dozen more brick-and-mortar companies with online operations to worry about now. In addition, not all eBusiness is related to volatile sectors, such as eTailing and advertising-supported content delivery."

Besides, customer facing online systems, integration of back-office applications to the supply chain via the Internet, and the development of Intranet applications are key elements of an eBusiness strategy. IDC believes that an end-to-end integrated eBusiness solution is the logical next step after the integration provided by enterprise-applications suites and eCommerce applications.

IDC has also predicted that in the first real year of the new millennium, several key thresholds will be crossed as summarized below.

Key Thresholds That Will Be Crossed in 2001 in Asia Pacific (US$)

Item Worldwide Asia/Pacific (Ex. Japan)

IT Spending >$1 trillion >$70 billion

Internet Commerce >$500 billion >$18 billion

Cell Phones Installed >600 million >160 million

PCs installed >500 million >75 million

Web users >500 million >59 million

Wireless mCommerce >$1 billion >$100 million

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Source: IDC, December 2000

Other IDC predictions for 2001 include:

– IT markets in South East Asia and South Korea will slowdown

– Internet stocks will not stage a comeback

– The Internet stock crash will not affect investment in eBusiness

– Hype around mobile commerce and Internet connectivity will reach hysteria levels

– The ASP market will gain acceptance but there will be more hype than happening

– CRM applications will be key driver for technology investments

– Mergers and acquisitions will abound

– Internet security solutions will be hot

– IP Telephony will gain a foothold

– "P2P" will become a red-hot buzzword, but will get a cool reception in corporations

More information such as the above can be found in IDC's report "Asia/Pacific: 2001 Predictions". To purchase the report, please contact John Mlynowsky at (02) 9925-2237 or email jmlynowsky@idc.com

About IDC:

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and eBusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts local and worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organisations, eBusiness companies and the financial community. Additional information can be found at www.idc.com.au