Released on = April 16, 2007, 1:55 am

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = This Key Note Market Report focuses on the business usage
of, and spending on, the Internet. It examines two areas: business expenditure on
Internet services and software (and hardware), and business revenues from the
commercialisation of the Internet (i.e. revenues from Internet e-commerce).

Press Release Body = Internet Usage in Business - Market Report

This Key Note Market Report focuses on the business usage of, and spending on, the
Internet. It examines two areas: business expenditure on Internet services and
software (and hardware), and business revenues from the commercialisation of the
Internet (i.e. revenues from Internet e-commerce).

In 2004, total business expenditure on Internet services, software and hardware was
an estimated £8.29bn, a rise of 15.8% on 2003. The market is being driven by
expenditure on software and services, reflecting the moves by companies to exploit
their Internet connections to improve their operations and generate revenues for
their online activities. E-commerce revenues are rising rapidly, driven mainly by
business-to-business (B2B) transactions. In 2004, e-commerce revenue in the UK was
worth an estimated £294.9bn, of which £60.5bn was accounted for by Internet
e-commerce.

If the period spanning the late 1990s to the year 2000 can be labelled as the
infrastructure build-out phase of the Internet, and the period between 2000 and 2003
can be called the phase of commercial exploitation of the Internet, then 2003 to
2005 can be labelled as the period when the Internet came of age. In this period, as
in the rest of the IT industry, clients are focused on the return they receive on
their investment. Return on investment (ROI), net present value (NPV) and the
internal rate of return (IRR) on Internet projects have become watchwords for the
Internet industry.

In 2005, Internet connectivity is almost ubiquitous among UK companies. As such, it
is no longer seen as only a tactical weapon used to improve business communications;
instead, it is increasingly being viewed as a strategic weapon used to improve a
business\' entire value chain. As the Internet becomes integral to business
operations, it is being judged on the same criteria as other capital expenditure.

Key Note forecasts rapid growth in both e-commerce revenue and business expenditure
on Internet services, software and hardware over the next 5 years to 2009. Greater
consolidation among vendors of Internet products and services is expected, with
services such as voice over Internet protocol (VoIP) and on-demand computing being
prime drivers in the uptake of higher-capacity broadband connectivity among
businesses. In the longer term, companies such as Yahoo! and Google could play a
more significant role in the business Internet market, using their Internet
platforms to sell IT and business services to small- and medium-sized enterprises
(SMEs).

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