RealTime IT News

Study Reveals Bustling Internet Economy

The U.S. Internet economy performed better than expected in 1998, generating more than $300 billion in revenue and providing 1.2 million jobs, according to a recent University of Texas study funded by Cisco Systems Inc.

The first of a series of quarterly reports, the study also found that e-commerce is growing at a faster rate than was predicted. In 1998 total e-commerce exceeded $102 billion for U.S. based-companies, easily surpassing predictions of $200 billion by 2000, made by IBM last year. Retail stores like Amazon.com and eToys led the way, with online stock trading and travel reporting an impressive $58 billion in revenues, the study said.

The findings are based on interviews done with more than 3,000 U.S.-based companies that generated all or part of their revenues from Internet products or services.

The study also found Internet employees on average are more productive than employees in other sectors. The top Internet commerce companies generated a combined market value of more than $2.4 trillion.

"The Internet economy continues to create unprecedented growth opportunities for people, companies and countries on a global basis," said John Chambers, Cisco Systems president and chief executive officer.

"For the first time, this study measures real jobs and economic growth directly tied to the emerging Internet economy. When you consider the economic ripple effect that these jobs and economic growth drive worldwide, I believe the actual Internet economy will usher in an Internet century of profound and long-lasting change for business and people."