October 27, 1999
Cisco Systems & UT Release Latest Internet Indicators
Second quarter numbers show explosion in e-commerce, e- economy projected to top $507 billion
|
|||||||
AUSTIN, TX - The Internet Economy grew 68 percent from the first quarter of 1998 to the first quarter of 1999 and now accounts for 2.3 million jobs, according to a study conducted by the University of Texas' Center for Research in Electronic Commerce.
The figures - the Internet Economy Revenues Indicator(tm) (IERI), the Internet Economy Jobs Indicator(tm) (IEJI) and the growth rate - are the principal findings of the second report on measuring the Internet Economy coordinated by two UT business professors, Anitesh Barua and Andrew Whinston, and released under the sponsorship of Cisco Systems.
The latest study projects that the Internet Economy will reach $507 billion this year. According to the indicators, growth was strong in all layers of the economy, but E-commerce exploded, increasing 127 percent from Q1 1998 to Q1 1999. In Q1 1998, E-commerce accounted for 25.8 percent of Internet revenues. That figure jumped to 34.8 percent in Q1 1999 as companies leveraged investment in infrastructure to expand E-commerce.
As Cisco reported on their Website, the study found that:
- "The Internet Economy grew from $64 billion in the first three months of 1998 to $108 billion in the first three months of 1999, an increase of 68 percent.
- The Internet Economy, up from $301 billion in calendar year 1998 to an estimated $507 billion for 1999, today generates more annual revenue than such entrenched American industries as telecommunications ($300 billion) and airlines ($355 billion).
- E-commerce, the amount of business conducted directly on the Internet, increased 127 percent from the first quarter of 1998 to the first quarter of 1999.
- Of 3,400 businesses surveyed to measure the size of the Internet Economy, more than one third did not exist before 1996. Those new businesses now employ 305,000 people.
"The complete results of the study, which was performed by the Center for Research in Electronic Commerce at the University of Texas's Graduate School of Business, can be found at http://www.InternetIndicators.com."
"The fact that the Internet Economy rose so much in just one year underscores that companies are embracing the Internet and that an Internet Revolution is reshaping the economic landscape," said John Chambers, president and CEO of Cisco Systems.
"What is clear from our research is that the Internet Economy is an economic phenomenon never seen before," said Dr. Anitesh Barua, who along with Dr. Andrew Whinston headed the University of Texas research team that performed the study. "We are pleased to partner with Cisco to study this remarkable new economy."
See the Figures
For more information contact: Anitesh Barua, 512-471-7895 or visit the Internet Indicators Website.
For information on specific programs at the McCombs School, consult our contacts page. For media information, contact the Communications Director by phone at 512-471-3314 or by email at CommunicationsDirector@mccombs.utexas.edu.
