New Data from Zona Research Indicates Intranet the Largest Opportunity

Business Wire, Oct 31, 1996

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Oct. 31, 1996--Zona Research, Inc., provider of information and advice to the Internet industry, has released new market projections indicating that the discreet Intranet market opportunity is significantly larger than the Internet market.

The projections show that the Intranet market, based on revenue, will exceed the Internet market by a ratio of two to one through 1999.

Specific Intranet system components included in the model are system hardware (CPU, disk, memory), communications hardware (modems, switches, hubs), server communications software, authoring technology, search and retrieval tools, browsers, services, on-line services (dial up), and connectivity (dedicated access). The projections are based upon taking adoption trends from the beginning of 1995 and extrapolating from primary research what type of purchasing plans corporations have over the coming years.

"We still see the Intranet market as the most significant opportunity over the short to mid-term," said Stephen Auditore, President Zona Research, Inc. "And while we are seeing a number of new and interesting electronic commerce solutions and products designed for the retail consumer, we still believe it will still be several years before we see wholesale adoption of Internet technologies."

The new projections indicate that systems hardware, Intranet related services, and dedicated access server connectivity represent the largest opportunities while authoring technologies will most likely grow the most in the next three to four years. Growth in the Intranet browser market is expected to remain flat at its current $30 million level. -0-

INTRANET MARKET PROJECTIONS 1996-1999
In millions of dollars

                            1996       1997       1998       1999
Systems  Hardware        $1,336.89  $2,741.72  $4,605.19  $ 6,566.90
Communications Hardware  $  534.76  $1,096.69  $1,842.08  $ 2,626.76
Server Comm Software     $  802.13  $1,645.03  $2,763.12  $ 3,940.14
Authoring                $   17.08  $   54.37  $  117.53  $   167.36
Retrieval                $   53.30  $  112.97  $  179.29  $   255.30
Browsers                 $   29.97  $   31.61  $   32.88  $    32.58
Services                 $1,295.52  $2,791.56  $4,490.11  $ 6,521.11
On-line Services         $  426.27  $  903.73  $1,929.55  $ 2,786.18
Connectivity             $1,537.16  $2,724.32  $3,867.02  $ 5,506.54
TOTAL                    $6,033.09  $  12,102  $18,135.09 $28,402.88
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