IDC Says, Web Services Are Becoming Reality: IT Opportunity Around Web Services Will Reach $21 Billion by 2007

NORTH SYDNEY – JANUARY 5, 2003 – Web services will become the dominant distributed computing architecture in the next 10 years and will eventually define the fabric of computing, according to IDC. Web services will drive a total software, services, and hardware opportunity in the U.S. of $21 billion by 2007 and will peak at $27 billion in 2010.


Our forecast shows the Web services opportunity distributed unevenly among technology providers and peaking at different times for each technology segment. The software opportunity will peak first in 2007 and then decline as customers build out their platforms, says Anthony Picardi, Ph.D., senior vice president of Global Software at IDC.

The hardware opportunity will follow in 2009 and then professional services in 2011. It is important for vendors in each of these segments to understand the current market trends and adoption rates in order to take the appropriate actions that will ensure future success.

By the end of 2002, 5% of U.S. enterprises will have completed Web services projects, and 80% will have some type of project under way by 2008. Growth will be the fastest in large enterprises in the manufacturing and services industries, although the market will be dominated by small enterprises as they become adopters by 2007.

As Web services technology evolves and is assimilated into the enterprise, new challenges will emerge for the IT industry to collectively address. This will require continued cooperation among vendors to meet interoperability challenges, which will in turn unleash more product innovation and enable the next generation of cybersmart computing solutions to unfold. IDCs recently published market analysis, U.S. Web Services Market Analysis, 2002 (IDC #28493) provides the latest Web services forecast, current trends, adoption rates and what vendors can expect from each Web services segment including: software, hardware, ASP, xSP, IT services and telecommunications.

This forecast comes from IDC‷s Web Services Total Opportunity Model, a dynamic behavioral simulation model relating timely benefit and cost information from real adopters to the total Web services IT opportunity in hardware, software, and services. This model shows the synergy between IT disciplines as the opportunity develops.

Dr Anthony Picardi, IDC Senior Vice President of Global Software will be in Australia to present at a Breakfast Briefing titled, Global Software Market Emerges From Crisis, on the 20th February 2003 at the Westin Hotel, Sydney.

To register for this event please go to: or for further information about this briefing please contact: Bree Charlton via Email: or ph: 02-9925 2200.

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