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Domain names hit 2 million mark

May 19, 1998
Web posted at: 12:30 PM EDT

by Patrick Thibodeau

Everything about electronic commerce appears to be pointing up.

For instance, Network Solutions, Inc. says it has reached and passed its 2 millionth domain name registration. Meanwhile, in a separate announcement, Forrester Research, Inc. says online transactions will push the U.S. market for electronic-commerce software from $121 million last year to $3.8 billion by 2002.

The software sales estimate, however, represents roughly just 1% of the $344 billion in U.S. Internet commerce revenue expected by 2002. Electronic-commerce revenue last year was pegged at $10 billion by the Cambridge, Mass.-based research company.

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The largest segment of the electronic-commerce software market will be for systems that sell goods either from business to business or to consumers. This market represents $1.4 billion of the year 2002 total. The second-largest spending category was for tools, which is expected to reach $700 million.

The largest buyers of electronic-commerce technologies will be the biggest companies, said Shanta Puchtler, an analyst at Forrester's Commerce Technology Strategies service. Companies with more than 5,000 employees, which represent 4% of all companies, will account for 43% of total market revenue. If that's broadened to include companies of 1,000 or more employees -- which is 16% of the total -- the percentage of the market increases to 77%.

The survey runs counter to the popular notion that small start-ups will be big users of electronic-commerce technology, Puchtler said. "They aren't going to represent the vast majority of commerce out in 2002," he said. Ironically, however, the honor of being the 2 millionth net registrant isn't going to a large corporation. The milestone was set by a small Dallas travel business, Voyagers, The Travel Store, Network Solutions said.

Network Solutions said it reached the milestone on May 4.

Related CNN Interactive stories:

• White House to release new Internet management plan soon
• EU reminds U.S. it doesn't own Internet
• Internet registry firm expands reach beyond U.S.

Related stories at IDG.net

• Judge declares domain name fund illegal -- for now (InfoWorld)
• What's in an Internet Domain Name? (InfoWorld)
• Control of domain name system remains in flux (InfoWorld)
• Might makes right in name fight (Computerworld)
• NSI set to provide around-the-clock Net address updates (InfoWorld)

Related sites:

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• Network Solutions
• Forrester Research, Inc.

External sites are not endorsed by CNN Interactive

 

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