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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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