IDC Predicts Global Internet Economy Will Approach One Trillion Dollars By 2002
SAN JOSE, Calif., Sept. 16, 1998–The Internet Economy now totals $200 billion worldwide and by 2002 will total upwards of $950 billion, International Data Corporation announced yesterday at the opening day of its Internet Executive Forum here. "This is larger than the current economy of Greece or Portugal," said John Gantz, IDC senior vice president and conference co-chairman during the Forum's opening remarks. Day one of the two-day conference focused on the impact on both the users and the architects of the Internet Economy.
IDC research indicates the biggest inhibitors to growth have been bandwidth and security. As a result of projected bandwidth complications, Dr. Robert M. Metcalfe, vice president of technology, International Data Group and Forum speaker, proposed the "pay as we go" model. "We need to charge for bandwidth to deter waste and drive revenues," Metcalfe said. "If food, transportation and electricity are metered, why not the Internet?"
However, users would not shoulder the burden according to Metcalfe's "pay as we go model". Advertisers would be billed for downloads and the government would subsidize those end users who could not afford to pay an Internet access fee.
While the fee structure of the Internet may change as a result of significant growth in the Internet Economy, the importance of customer relationships may not, according to Dr. Jeffrey Rayport, associate professor of business administration, Harvard Business School and another Forum speaker. "Everything we do on the Web is a service interface," Rayport said. "This notion of relationships is one that traditional businesses know a lot about but now must be thought about in terms of the Web."
The following topics were also discussed during day one of IDC's Internet Executive Forum:
"Surviving Cyber Competition"– presented by Jason Olim, CEO of CDNow.
"New E-Channel" — Mark Lorimer, president & COO of Auto-By-Tel; Chris Nemeith, VP of sales & marketing at The New York Times Electronic Media; John Samuel, director, distributing planning of American Airlines.
"The Emerging Interactive Division: A New Company Model" –Robert Langer, director of Dell Online; Stephen J. Killeen of Fidelity Interactive; and Michael Pusateric, VP, interactive sales at Marriott International.
Headquartered in Framingham, Mass., International Data Corporation provides IT market research and consulting to more than 3,900 high-technology customers around the world. With a global network of 375 analysts in more than 40 countries, IDC is the industry's most comprehensive resource on worldwide IT markets, products, vendors, and geographies.
IDC/LINK, an IDC subsidiary, researches and analyzes the home computing market, leading-edge technologies in telecommunications and new media, and the convergence of computing and consumer electronics.
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