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KN72027

KEY NOTE INTERNET USAGE IN BUSINESS OCTOBER 1997

Overview

ISBN 1-85765-740-3

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Table of Contents

Executive Summary

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TABLE OF CONTENTS

Executive Summary

Market Definition

INTRODUCTION

DEFINITIONS

MARKET SECTORS

MARKET POSITION

MARKET TRENDS

Table 1: Position of the Internet and Intranet Market Within the Total UK Information Technology Market (£m), 1995 and 1996

Market Size

THE TOTAL MARKET

BY MARKET SECTOR

A GLOBAL PERSPECTIVE

Table 2: The Business Internet and Intranet Market by Value (£m), 1995-1997

Table 3: The Business Internet and Intranet Market by Value ( percent), 1995-1997

Table 4: Breakdown of the Business Internet and Intranet Market by Product Type by Value ( percent), 1995-1997

Table 5: The Business Internet Connectivity Market by Value and Volume (£m and 000 connections), 1995-1997

Table 6: Breakdown of the Business Internet Connectivity Market by Type of Connection by Value (£m and percent), 1995-1997

Table 7: Breakdown of the Business Internet Connectivity Market by Type of Connection by Volume (000 connections and percent), 1995-1997

Table 8: Leading Leased Line Providers by Market Share ( percent), 1996 and 1997

Table 9: Leading Dial-Up Internet Service Providers (estimated number of subscribers), April 1997

Table 10: Leading Business Dial-Up Internet Service Providers (number of accounts and percent), 1997

Table 11: The Business Internet and Intranet Software Market by Value (£m), 1995-1997

Table 12: Breakdown of the Business Internet and Intranet Software Market by Category by Value (£m), 1995-1997

Table 13: Leading Worldwide Brands of Server Software (number of sites and percent), July 1997

Table 14: Leading UK Brands of Server Software (number of sites and percent), July 1997

Table 15: The Business Internet and Intranet Hardware Market by Value (£m), 1995-1997

Table 16: The Business Internet and Intranet Services Market by Value (£m), 1995-1997

Table 17: The E-Commerce Market by Type by Value (£m), 1995-1997

Table 18: Number of Internet Hosts, 1981-1996

Table 19: Number of Internet Hosts and Domains, 1993-1996

Table 20: Number of Internet Hosts and Domains by Type, 1997

Table 21: Number of Internet Hosts by Location (000 and percent), 1992-1997

Industry Background

RECENT HISTORY

INDUSTRY CONCENTRATION

TRADE ASSOCIATIONS

Table 22: Key Internet Developments, 1972-1997

Competitor Analysis

THE MARKETPLACE

MARKET LEADERS AND THEIR BRANDS

ADVERTISING AND PROMOTION

Table 23: Internet and Intranet Companies in the UK (estimated number of companies), 1997

Table 24: Service Ranges Offered by Internet Service Providers (number of ISPs and percent), 1997

Table 25: Leading UK Internet and Intranet Software Companies (product ranges offered), 1997

Table 26: Main Media Advertising Expenditure by Internet and Intranet-Related Companies (£000), Year Ending March 1997

Strengths, Weaknesses, Opportunities and Threats (SWOT)

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

Buying Behaviour

BUSINESSES ON THE INTERNET

USES OF THE INTERNET

INTRANETS

PUBLISHERS' WEB SITES

INTERNET ADVERTISING

Table 27: Business Internet Connections by Type of Connection ( percent), March 1997

Table 28: Business Internet Penetration by Company Size ( percent), 1996

Table 29: Business Internet Access Penetration By Industry Sector ( percent), April-June 1997

Table 30: Business Internet Usage by Service Type ( percent), 1996

Table 31: Business Internet Usage by Activity ( percent), 1997

Table 32: Business Internet Usage by Category of Usage (number of organisations), 1997

Table 33: Business Intranet Penetration by Company Size ( percent), 1996

Table 34: Business Intranet Penetration by Industry Sector ( percent), April-June 1997

Current Issues

PUSH TECHNOLOGIES AND INTERNET CHANNELS

PUSH TECHNOLOGY COMPATIBILITY

INDUSTRY RATIONALISATION

ONE-STOP SHOPPING

INTERNET SECURITY

VIRTUAL INTRANETS

EXTRANETS AND BUSINESS INFORMATION AND THE INTERNET

DOMAIN NAMES

THE GROWING IMPORTANCE OF JAVA

FASTER INTERNET ACCESS

Forecasts

THE BROADCAST MODEL

MULTIMEDIA ALLIANCES

THE IMPORTANCE OF CONTENT

IMPROVED INTERNET PERFORMANCE

INTERNET CAPACITY

NEW ACCESS TECHNOLOGIES

E-COMMERCE

INTERNET VOICE AND FAX

END OF THE BROWSER WARS

FUTURE INTERNET USES

FORECASTS 1997 TO 2001

Table 35: The Forecast UK Internet and Intranet Market by Value (£m), 1997-2001

Table 36: Forecast Business Internet Access Penetration ( percent), 1996-2001

Table 37: Forecast Business Intranet Penetration ( percent), 1996-2001

Table 38: Value Breakdown of the Business Internet and Intranet Market by Product Type by Value (£m), 1997-2001

Table 39: Forecast Business Internet Connections by Type of Connection (000), 1997-2001

Table 40: Forecast E-Commerce Expenditure (£m), 1997 and 2001

Company Profiles

INTRODUCTION

DEFINITIONS

FURTHER INFORMATION

Further Sources

ASSOCIATIONS

PERIODICALS

DIRECTORIES

GENERAL SOURCES

HBI UK INFORMATION SOURCES

GOVERNMENT PUBLICATIONS

OTHER SOURCES

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EXECUTIVE SUMMARY

The UK business Internet and intranet market (covering hardware, software and services) is expected to reach £245m in 1997, having grown by 88.5 percent over the year.

The market remains dominated by spending on Internet products and services, although spending on intranets is rising rapidly. The main factors behind the growth of the Internet and intranets have been: the growth of groupworking; the growth of distributed enterprises; and the need to reduce the costs of current client-server computer networks. Business usage of the Internet is growing with communication still the main factor behind Internet access. However, e-commerce is a growing force leading to Internet development.

Spending on the Internet breaks down into spending on software, hardware, services, and connectivity. Connectivity is currently the largest sector of the market.

The major future uses for the Internet will be: collaborative working; electronic data interchange (EDI); e-commerce; virtual private networks (VPNs); intranets or extranets; business information distribution and sale; Internet telephony and video conferencing; and the creation of virtual companies or business units, i.e. integration of information technology (IT) systems between companies.

Key Note estimates that the UK business Internet and intranet market will be valued at £3.66bn in the year 2001. Spending on intranet hardware, software and services will rise the fastest, as intranets become the established means by which companies network their operations.

Text © 1997 Key Note

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Last updated by Duncan Nottage 11th February 1999