The Internet is Here to Stay

Bell bottoms.  Pet rocks.  Rubik’s cubes.  Razor scooters…  While fads come and go…the Internet is here to stay.

We have already seen incredible examples of how internetworking is changing the way people work, live, play and learn.  Most of those changes have only just begun.  Over the next decade, Internet access will conservatively reach one-fifth of the planet.  And, as nations race to deploy broadband networks, productivity and efficiencies wrought by the Internet will increase in scope and importance.  The pace of technological innovation shows few signs of abatement and promises exciting new applications for education, commerce, government, and communications and many other areas.

While some suggest that the current unrest means the Internet sector is in trauma, we believe the data we have compiled show that 2000 was yet another incredibly successful year for the Internet.  It is clear that while the sector may be navigating a “speed bump” now, the best days for the Internet are yet to come…

For the Internet, Y2K Was A Very Good Year…

·        GLOBAL INTERNET USAGE up 67% (248M to 414M). (eTForecasts, Feb. 2001).           

·        DOMAIN NAMES registered up 114% in 2000 (14M to 30M) (www.Whois.com).

·         HOST COMPUTERS up 45% in 2000, now topping 100 M. (Telcordia Technologies Inc ., Jan. 2001).

·        WEB PAGES posted up 230% in 2000 (1B to 3.3B). (Cyveillance, July 2000).

·        SERVER SHIPMENTS up 21% worldwide in 2000 (Dataquest, Feb. 2001).

·        B2C E-COMMERCE up 103% in 2000 ($B to $56B). (ActivMedia, Nov. 2000).

·        B2B E-COMMERCE up 132% in 2000. ($145B to $336B). (Gartner, Feb. 2000; Jupiter , Oct. 2000).

·        HOLIDAY E-COMMERCE spending up 108% in 2000. (Goldman Sachs, Dec. 2000)

·        VENTURE CAPITAL investments in the US up 73% in 2000 (to $103B). (NVCA , Jan. 2001).

·        NUMBER OF COMPANIES receiving VC funding up 35% (4,000 to 5,400). (NVCA, Jan. 2001).

·        INTERNET ECONOMY JOBS up 34% (2.3M to 3.09M). (Internet Indicators , Jan. 2001).

·        INTERNET ECONOMY REVENUES up 58% in 2000 (to $830B). (Internet Indicators, Jan. 2001).

·        SMALL BUSINESS WEB SITES up 123% in 2000. (Verizon, 2001).

·        RESIDENTIAL BROADBAND services up 230% in US in 2000. (Strategis , Jan. 2001).

·        DSL DEPLOYMENT up 447% in 2000 (to 4.5M). (IDC, Feb. 2001).

·        HIGH TECH EQUIPMENT ORDERS up 60% in 2000. (Boston Globe 12/19/00 citing JP Morgan).

·        SALES OF NETWORKING EQUIPMENT to telecom service providers up 118% in 2000. (Infonetics Research, Feb. 2001).

·        BUSINESS I.T. SPENDING as a percentage of gross revenues up 8.7% (compared to 3.4% increase in 1999). (META Group, Feb. 2001).

·         US PRODUCTIVITY up 4.3% in 2000 than 1999 -- largest 1 year increase since '83 -- gains largely due to I.T. (Dept. of Labor , Feb. 2001).

·         U.S. GDP up 3.7% in 2000, with 1/3rd growth due to I.T. (2001 Economic Report of the President).

…And the Best May Be Yet To Come

·        GLOBAL INTERNET USAGE 2005: 1.17 billion people (up 183%). (eTForecasts, Feb. 2001).

·        B2B E-COMMERCE 2005: $6.2 trillion (up 1,775%). (Gartner Group, Feb. 2001).

·        B2C E-COMMERCE 2010: $1.1 trillion (up 1,864%). (ActivMedia, Nov. 2000).

·        RESIDENTIAL BROADBAND, US 2005: 36 million (up 600%). (Strategis, Jan. 2001).

·         WORKPLACE BROADBAND, US 2005: 55 million (up 129%). (Jupiter Comm., Jan. 2001).

·         DSL DEPLOYMENT, 2004: 66.4 million expected by 2004 (up 1,376%). (IDC , Feb. 2001).

·         EMAIL VOLUME 2005: 35 billion every day by 2005 (up 250%). (IDC, Oct. 2000).

·         B2B INFRASTRUCTURE spending 2005:  $80.9 billion (up 3,752%).  (Jupiter Communications, Jan. 2001).

·         COLLEGES OFFERING E-LEARNING 2004: 3,300 (up 120%). (IDC, Dec. 2000).

·        BUSINESS I.T SPENDING 2001: 65% of Global 2000 corporations expect IT budgets to go up 13.3% despite fears of an economic slowdown. (Gartner Group, Inc., Feb. 2001).

For questions or comments on this data, please contact John Earnhardt, Policy Communications

at jearnhar@cisco.com.

 
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