Study: Intranet Spending Reaches $10.9 Billion

One out of every four dollars spent on U.S. company Web initiatives in 1998 was spent on intranets, amounting to $10.9 billion, according to a new study by International Data Corp.

The study, entitled, “The IDC Intranet Fact Book: First Half 1999,” said more than half of larger U.S. organizations had intranets in place by the end of 1998 and the number increases with company size. IDC estimates that there are 30 million intranet users in the US, and the number of intranet Web sites is also increasing.

The intranet growth trend should continue as intranets become an integral part of corporate America. Application development and deployment will drive intranet spending forward, said Mike Comiskey, senior analyst at IDC.

“Users have recognized the productivity and cost reduction benefits of having open access to applications and databases,” he said. “Companies that extend intranet infrastructure will continue to see positive returns on their investment.”