IDC Says Software Components Play a Major Role in the Growing and Dynamic eBusiness Marketplace

FRAMINGHAM, MA — OCTOBER 11, 2000 — Software components are playing a major role in the ebusiness platform. Worldwide revenue in this market will increase at a compound annual growth rate (CAGR) of 40%, from $516 million in 1999 to $2.7 billion in 2004. According to IDC, virtually every application server software platform vendor will standardize on the Enterprise JavaBean (EJB) component model for deploying applications.

"EJB components form the basis for the most effective way of dealing with the heterogeneous, integration-intensive ebusiness tasks required in building comprehensive ebusiness solutions," said Steve Garone, vice president of IDC's Application Development and Deployment program. "Because users seek ebusiness solutions that are integrated and comprehensive, the relevance of EJB components to the ebusiness platform cannot be overstated."

According to IDC, the use of server-side Java components will rise sharply, with sales increasing at a 1999–2004 CAGR of 124%. By comparison, Microsoft-centric and non-EJB components will increase at CAGRs of 24% and 33%, respectively.

IDC believes the sale of Java-based components will surpass those aligned with Microsoft platforms between 2002 and 2003. By 2004, the sale of server-side Java components will exceed that of non-EJB components.

"This fast-growing segment indicates not only will software components be extensively used to deploy applications in an ebusiness environment but EJB will become a de facto standard for those component implementations," Garone said.

Information like the above can be found in IDC's report Components and the eBusiness Platform (IDC #B23128). This report looks at the role software components play in the ebusiness platform. A multi tier architecture explains how organizations are beginning to build new systems for the Internet to fulfill their ebusiness pursuits. Functional layers of the ebusiness platform are outlined.

To purchase this report, contact Cheryl Toffel at 1-800-343-4952, extension 4389, or at

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 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 organizations, ebusiness companies and the financial community. Additional information can be found at

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

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