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Purchases of Web-related technology are now a business imperative, IDC says

By IDC
Johannesburg, 22 Aug 2000

During the past year, U.S. businesses have significantly changed their Web-spending patterns. Gone are the days of Web spending to build an presence, and in their place is spending to integrate the Internet into internal and external business processes. In other words, purchases of Web-related technology are now a business imperative, according to IDC.

"Today, corporate Internet spending is an investment that directly impacts the strategic direction of organizations," said Anna Giraldo Kerr, research manager for IDC`s Internet and eCommerce Strategies program. "The strategic impact remains, but it has shifted from reducing costs to the transformation of business models."

While the reason for Web spending is evolving, the amounts expended for IT hardware, , and services will remain high. IDC expects Web spending on IT products and services to more than double from $119.1 billion in 2000 to $282.5 billion in 2003.

This year, for the first time, U.S. businesses will spend more on Web-related IT services than hardware, and the services category will represent the largest opportunity throughout IDC`s forecast. Nevertheless, the importance of hardware should not be underestimated.

"Hardware vendors play a critical role in the ebusiness supply chain. Their products enable the interface and access of Web technologies," Kerr said. "Although it may appear that Internet-related hardware is at the bottom of the food chain, without it there would be no Internet activity."

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International Data Corporation (IDC)

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