Revenues in the Worldwide Web-to-Host Market Accelerated Nearly 370% in 1998, According to IDC

FRAMINGHAM, Mass., May 19, 1999 — The Web-to-host browser market is moving full steam ahead. International Data Corporation (IDC) reports worldwide revenues increased nearly 370% to $112.4 million in 1998 and are on track to reach $1 billion by 2002.

"Intranet migrations are driving much of the growth in this market," said Lucinda Borovick, program manager with IDC's Intranet Networking Architecture research program. "Vendor initiatives that provide a smooth migration path from traditional host access clients to browser-based clients, coupled with product functionality that is comparable with traditional client packages, are paving the way for large-scale Web-to-host deployments."

IDC splits the Web-to-host market into three segments: Internet, extranet, and intranet. Currently, most sales occur in the intranet market. In 1998, this segment accounted for almost 70% of revenues. In 1998, the Internet segment accounted for less than 5% of revenues, but by 2003, IDC expects it will account for more than a third of sales.

According to IDC, the challenge for the coming year is to strengthen sales in the extranet and Internet segments. "Critical product feature sets such as security, scale, and user interface must come together in one product offering. Many of the products that meet the security and user interface requirements for Internet deployments lack the ability to support more than 500 users," Borovick said. "Additional infrastructure barriers remain, including limited customer and ISP directory implementations."

OpenConnect was the leading vendor in 1998. With 20.1% of the market's revenues, it edged out IBM, which held a 19.8% market share. "OpenConnect continues to stay one step ahead of the competition in terms of product functionality," Borovick said. "However, its lack of a host access installed base could inhibit its growth. IBM, on the other hand, has a significant installed base in the host access market and is in a very strong competitive position." Other vendors with strong positioning in the overall market are Attachmate and Wall Data, according to IDC.

IDC's Web-to-Host Review and Forecast, 1998-2003 bulletin (IDC #B19139) examines the opportunities and growth in the Web-to-host market. A revenue, shipment, and installed base forecast is provided through 2003, broken down by four regions (United States, Europe, Asia/Pacific, and rest of world). Major trends in the market are discussed. The market is divided into three segments ? intranet, extranet, and Internet ? and each segment is discussed. Additionally, the bulletin details vendor performance and graphs vendor market shares. IDC's Leadership Grid, which provides a qualitative comparison of the top-tier Web-to-host vendors, is included. To order a copy of the bulletin, contact Sue Beauregard at 1-800-343-4952, ext. 4774 or at sbeauregard@idc.com.

About IDC

International Data Corporation is the information technology industry's most comprehensive resource on worldwide IT markets, trends, products, vendors, and geographies. IDC provides data, analysis, and advisory services to the world's leading IT suppliers as well as IS professionals in finance, insurance, entertainment, advertising, consumer goods, and publishing. IDC's research and opinions are based on the results of more than 300,000 end-user surveys, in-depth competitive analysis, broad technology coverage, and strategic analysis. IDC is committed to providing global research with local content through its 500 analysts in more than 40 countries worldwide. Additional information on IDC can be found on its Web site at http://www.idc.com.

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

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