Web Services Expected to Drive Total Software, Services, and Hardware Opportunity to $34 Billion by 2007, According to IDC
FRAMINGHAM, MA – MARCH 13, 2002 – Web services are playing an increasingly important role in integration initiatives – so important that IDC predicts the total software, services and hardware opportunity derived from Web services will catapult from 1.6 billion in 2004 to $34 billion by 2007.
According to IDC, the Web Services opportunity is very sensitive to the packaging and price of the total solution, resulting from the counterintuitive impact of prospect demographics. "A rush to market with complex soltions that fail to provide business benefits at reasonable costs for small businesses will, in fact, increase near term opportunity, but severely reduce the long term potential of the technology, said Dr. Anthony Picardi, senior vice president of Global Software at IDC."
IDC has, for the first time in the industry, created a dynamic behavioral simulation model that relates timely benefit and cost information from real adopters to the total Web Services IT opportunity — in hardware, software, and services. The model shows how these IT disciplines draw synergies among each other as the opportunity develops.
The simulation model relates Web Services projects to the ability of IT staff, both internal and external, to implement the projects in the required time. The resulting demands for system integrators respond rapidly to both technology generations and the demographics of the prospect base. Under the right conditions, Web Services-enabled projects could represent a significant fraction of the system integration market.
Results from the model and our recent Web Services survey will be unveiled at IDC's conference, Directions 2002: IT leadership for the Rebound. At the conference, Dr. Anthony Picardi will introduce the first Web Service forecasts, and numerous analysts in the IT disciplines will discuss the impact of Web Services on their technology sectors.
IDC covers all aspects of the web services market and provides market intelligence through several IDC services. For more information on web services call Dawn Daggett at 508-935-4108 or visit www.idc.com/webservices, where you can download one of IDC's latest web services documents for free: Web Services: Adoption, Timeline and Related Business Opportunities. This document defines a core Web Services Architecture(TM) and discusses how it will affect all the different facets of the industry.
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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