IDC Introduces Internet Commerce Market Model and World Wide Web index; IDC's Internet Commerce Market Model provides industry with the most comprehensive model of Internet usage; Corresponding IDC Web Index provides single best shortcut to understanding key Dynamics of commerce over the Web

Business Wire, Jan 17, 1996

FRAMINGHAM, Mass.--(BUSINESS WIRE)--Jan. 17, 1996--To address how commerce over the Internet will evolve, International Data Corporation (IDC) has developed the industry's most complete and comprehensive model of Internet usage dynamics and demographics -- the IDC Internet Commerce Market Model (TM). The model is based on IDC's vast global research base, more than 40,000 interviews with homes and businesses in over 15 countries each year, 15 years' experience monitoring business and consumer online markets, and a series of specially tailored quarterly multinational surveys of Web user behavior.

"This new model offers a one-of-a-kind view of the Internet market that includes both the industry's deepest, most granular understanding of Internet and Web demographics and behavior and the most comprehensive and detailed knowledge of the total available market," said John Gantz, IDC's senior vice president of desktop technologies. "Using this tool, the industry as a whole can begin to distinguish realizable market opportunity from hype and hysteria."

Using the output of this model, IDC has developed the IDC Web Index (TM) to represent the current and forecasted opportunity for commerce on the Web. The IDC Web Index, like the Dow Jones, provides a single number that is a key indicator. The Index measures the monthly increase in home pages and hours of usage, and is the single best shortcut to understanding the key dynamics of commerce over the Web. For Web page developers -- most companies in business today -- it offers a measure for estimating return on investment (ROI) for development. For the vendor community, the Index offers a gauge of potential market demand for tools in support of Internet commerce. For example:

o If the number of Web users grows faster than the number of pages, the ROI of developing a Web page goes up as there are more eyes to view the page.

o If the number of Web pages grows faster than the number of users, the ROI of a page goes down as there is increasing competition for user mindshare.

o If the number of pages keeps pace with the number of users, the key determinant of Web page ROI is transaction intensity as each user buys more off the Web.

Ultimately, a "down" IDC Web Index means a down market for all sorts of tools and services for commerce over the Web, particularly those sold to Web page developers, such as servers and development tools. An "up" IDC Web Index means market opportunity will grow along with competition.

The findings of the IDC Internet Commerce Model and the IDC Web Index are available for purchase by contacting Cheryl Toffel at (800) 343-4952. For additional information about IDC's Internet Commerce program, please contact Elizabeth Freedman at (508) 935-4764.

About IDC

International Data Corp. is the world's leading provider of information technology data, analysis, and consulting. With research centers in 40 countries and more than 300 research analysts worldwide, IDC is uniquely positioned to provide a global perspective on IT market and technology trends.

IDC's subsidiary, IDC/LINK, specializes in the convergence of the information, telecommunications, personal computing, and electronic entertainment industries.

Based in Framingham, Mass., IDC is a subsidiary of International Data Group (IDG), the world's largest publisher of computer-related information and the leading global provider of information services on information technology. -0- (Note to editors: For more information on IDC's Internet research findings, please see the accompanying release, "Business on the Net: Shakeout Coming?")

CONTACT: IDC

Elizabeth Freedman, 508/935-4764

bfreedman@idcresearch.com

or

John Gantz, 508/935-4224

jgantz@idcresearch.com