Pure-Play Internet Service Firms Will Need to Broaden Their Offerings, IDC Says

FRAMINGHAM, MA – MARCH 19, 2001 – By the end of 2001, the pure-play Internet service firm that we know today will cease to exist. This does not mean, however, that this type of firm has no future. Instead, it has a future filled with broader opportunities. This is the message of a new IDC bulletin titled Amidst the Mayhem: The Future of the Internet Services Market.


"The pure-play Internet service firm of today will be replaced with a more powerful firm,"said Pooneh Fooladi, senior analyst with IDC's Internet Services research program. "The main reason for this is that despite the market trembling, ecommerce is becoming more important than ever before. It's becoming core to enterprise corporations’ overall business strategies and linked to all their other IT initiatives."

New opportunities are emerging with the increasing importance of ecommerce. 'Lacking internal resources and sensing the inherent importance of having them, established organizations will turn to service firms to not only build ecommerce initiatives but also to integrate them with other solutions and manage them on an ongoing basis," Fooladi said.

"The bottom line is that Internet service firms will have the opportunity to assist with the development of multiple IT initiatives as corporations will want all these initiatives integrated with an ecommerce capability," she added.

IDC believes the companies best positioned to capitalize on these opportunities will be those with well diversified portfolios that include technology and business services.

IDC's bulletin Amidst the Mayhem: The Future of the Internet Services Market (IDC #B23845) examines the Internet services market and its opportunities. The bulletin includes recommendations for those participating in this market. To purchase the bulletin, contact Jim Nagle at 1-800-343-4952, extension 4549, or at jnagle@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 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 www.idc.com.

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


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