BUSINESSWEEK ONLINE : JUNE 19, 2000 ISSUE
COVER STORY

As PCs Take a Back Seat, New Technology Drivers Emerge


Huge new industries are springing up to serve the Internet Economy, with 
growth prospects of up to 100% a year. Meanwhile, the PC market will plod along 
at 5.8% compound annual revenue growth through 2003. Here's where the action is 
going to be:

SOFTWARE APPLICATION   Forget CDs. These Net Age distributors will
SERVICE PROVIDERS      deliver, maintain, and update software for a
                       monthly fee.

STORAGE SERVICE        Today, corporations invest a lot of time and
PROVIDERS              money in storing and backing up their data--a
                       mundane task most would gladly outsource to
                       these companies.

IT AND WEB-SITE        The players range from hosting companies that
OPERATIONS PROVIDERS   will rent space in their data centers to
                       ''netsourcing'' companies that take over an
                       entire IT operation for a fee of up to $100,000
                       a month.

NETWORK SERVICE        These companies are spending billions to lay
PROVIDERS              down broadband networks to carry all the
                       applications and services that will reside on
                       the Web.

INFORMATION            As the Web becomes more crucial to work and per-
APPLIANCES             sonal communications, Web access devices like
                       wireless gizmos and set-top boxes will be in big
                       demand.

B2B E-SERVICES         These companies handle everything from linking
                       suppliers via the Net to online customer
                       service.


                               1999      2003     MARKETS COMPOUND
                              ---MILLIONS---       ANNUAL GROWTH

SOFTWARE APPLICATION           $296    $4,507          98%
SERVICE PROVIDERS

STORAGE SERVICE PROVIDERS        11     5,498         374

IT AND WEB-SITE OPERATIONS    2,129    13,444          59
PROVIDERS

NETWORK SERVICE PROVIDERS    17,050    31,676          17

INFORMATION APPLIANCES        4,700    14,500          56

B2B E-SERVICES                7,993    76,006         100


DATA: INTERNATIONAL DATA CORP.


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RELATED ITEMS
Technology on Tap

COVER IMAGE: The Info Tech 100

TABLE: The Leading Public Info Tech Companies

TABLE: The Leading Private Info Tech Companies

TABLE: Who Wins When the Web Is On Tap

TABLE: As PCs Take a Back Seat, New Technology Drivers Emerge

TABLE: Three Who Are Tapping In

ONLINE ORIGINAL: How Four Pioneers Are Turning on the Tech Tap

ONLINE ORIGINAL: Yipes Communications: Bandwith on Demand

ONLINE ORIGINAL: Equinix: The Mother of All Hosters

ONLINE ORIGINAL: DiCarta: Providing "Apps on Tap"

ONLINE ORIGINAL: Everdream: Turning on the Tap for Small Biz



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