International Data Corp. (a sister company to CIO Communications) predicts that not only will the revenue from transactions conducted over the internet surpass $1 trillion by next year, but in 2003 it will almost triple again to $2.8 trillion. Pretty good for something the Defense Department devised 31 years ago to bolster communications in case of a nuclear attack on Washington, D.C.
The dollars are no longer buying technology; they're going toward marketing, sales and content creation, according to Anna Giraldo Kerr, senior analyst for IDC's Internet and eCommerce Strategies research program.
An interesting statistic: For every dollar of e-commerce revenue generated in 1998, 93 cents were directly invested in the internet commerce infrastructure. IDC expects corporations to increase their investments significantly to improve this ratio by 2003.
And this year, IDC expects nontechnology investments to surpass technology investments. By 2003, technology investments' share will have decreased to 39 percent.