Online sales increase almost 3%, but HSN’s total sales dip by the same amount.
The market for technology that will speed up delivery of content on the web--a major concern for retailers--will explode from $1 billion in 2000 to $12 billion by 2007, Frost & Sullivan predicts.
The market for technology that will speed up delivery of content on the web will explode from just under $1 billion in 2000 to more than $12 billion by 2007, analysts and researchers Frost & Sullivan predict. Speeding up content is a major concern of the online retail industry. Industry research says that retailers lose significant sales if their content is slow to download to a user’s screen.
"Despite the opportunity, participants (vendors of content acceleration technology) must educate their customers to realize the market`s potential," says Frost & Sullivan IT Analyst Jarad Carleton. "Profitability is back in fashion and failing to show the cost savings of a solution along with its performance enhancements could be fatal."
The enterprise market regards content delivery as a waste of resources, Frost & Sullivan says. Most enterprises are reluctant to spend capital for infrastructure improvements, the company reports. "Content delivery sellers must quantify their advantages and express them in terms that buyers understand," says Carleton. "If your company cannot provide basic data regarding potential cost savings as a result of implementing your solution, you will not succeed in this market."
Frost & Sullivan (www.IT.frost.com) has published its findings in a new report, "U.S. Internet Content Delivery Markets."