| Gartner Survey Shows Consumers Largely Disinterested in Microsoft Passport, but They Sign Up Anyway
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| Only 11 Percent of Online U.S. Consumers Strongly Believe Passport Will Improve Their Online Experience
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STAMFORD, Conn., August 23, 2001 Despite all the hype over Microsoft Passport, consumers are largely disinterested or distrustful of the service, according to a new survey by Gartner, Inc. (NYSE: IT and ITB). Microsoft Passport enables consumers to sign on across Web sites with just one user ID and password, and in the future it will be used to personalize and customize consumer access to a wide range of Microsoft Hailstorm Web services, such as calendaring and shopping.
According to the survey of online adult U.S. consumers, more than 70 percent of those not yet signed up for Passport say they are highly unlikely to sign up for the service in the next six months. However, if current business practices are any guide, Microsoft may persuade these disinterested consumers to register anyway.
"The sobering reality is that the overwhelming majority of consumers are not interested in Passport," said Avivah Litan, vice president and research director at Gartner. "Consumers are primarily concerned with their privacy and security, and they are not willing to sacrifice privacy in exchange for advanced Web interaction services, such as those offered by Passport."
According to 8 million consumers who say they already signed up for Passport, the main reason they registered is they had to so that they could use other Microsoft services such as Hotmail e-mail. Only 11 percent of online U.S. consumers strongly believe that Passport will improve their online experiences.
"Because Passport will be bundled into Windows XP, Microsoft will enroll tens of millions of consumers into Passport over the next two years," Litan said. "Most consumer use of the service, however, is likely to be limited to Passport's most basic function - 'single sign-on' across Web sites that accept Passport."
Trust in Microsoft (and other service providers on the Web) runs relatively low as well. About one-third of online consumers are very concerned that Microsoft will not keep their personal and credit card information safe and secure, and that the software giant will sell their personal information to other companies without first consulting consumers. Just 15 percent affirmatively trust Microsoft to properly protect their credit card and other personal information.
Gartner analysts said Microsoft stands a better chance of rolling out its new Passport and Hailstorm services to users of its existing Web services. Usage of existing Microsoft ISP, e-mail and instant messaging services significantly drive consumer usage of Passport and trust in Microsoft, according to the survey results. Levels of trust in Microsoft run more than twice as high among users of Microsoft Web services than it does among AOL users.
Consumers are much more interested in Passport's basic feature - single-sign-on - than they are in personalized web services that will be offered by Hailstorm and enabled through Passport. Ninety percent of online consumers say they are not interested in sharing personal data in exchange for personalized services. On the other hand, consumer interest in a single sign-on service across Web sites ranks an impressive third to consumer desires for privacy and security features, according to the survey.
Gartner analysts said Microsoft will be severely limited in its ability to provide single-sign-on to consumers since it has to wait for e-tailers and other destination Web sites to integrate Passport into their Web platform. Only 10 percent of the 8 million online consumers who know they are registered with Passport say that they have used Passport at non-Microsoft sites.
Gartner analysts will provide further analysis on this issue during the Gartner Symposium/ITxpo 2001, October 8-12 in Orlando, Florida. Attendees will be able to choose from more than 250 in-depth, analyst-led sessions that explore IT inside and out. Gartner analysts will show how companies can align and manage their IT strategies and investments for bottom line advantage. More information on Gartner Symposium/ITxpo 2001 is available on the Gartner Web site at www.gartner.com/symposium/us. Members of the media can register by contacting Lisette Kwong at 212-320-2330 or at lkwong@tsicomm.com.
Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut, and consists of 4,600 associates, including 1,400 research analysts and consultants, in more than 80 locations worldwide. The company achieved fiscal 2000 revenue of $855 million. For more information, visit www.gartner.com.
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