“As a result of the dot-com bubble burst, there’s been much speculation that the opportunity for Internet services firms has evaporated. In fact, we believe while the opportunity is different, it is more powerful than ever,” said Pooneh Fooladi, senior analyst with IDC’s Internet services research program. “eCommerce will continue to drive demand for Internet services. It’s becoming an integral part of organizations’ overall strategies, and it’s becoming imperative to link ecommerce initiatives with other IT initiatives.”
Consumer demand for mcommerce will also fuel opportunity for Internet services firms, IDC forecasts spending on mobile solutions will rise from $1.4 billion in 2000 to almost $40 billion by 2005.
“Corporations are no longer satisfied with solutions that are only available on fixed-wire devices. They’re looking to extend functionality on an increasing number of applications to an increasing assortment of mobile devices,” Fooladi said. “This presents tremendous opportunity, not only for Internet services firms, but for all IT service and software providers.”
The US currently represents the largest market for Internet services, IDC forecasts that it will account for more than 40% of spending through 2005. Western Europe is currently spender on mobile solutions, representing 50% of 2000 spending. The US market, however, will soon catch up and by 2005 it will account for more than 40% of mobile solutions spending.
