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| Gartner Says Domain Names Cost a Typical Large Business Nearly $100,000 per Year |
| Managing Domain Names Will Become Even More Critical as Seven Additional Domains Are Introduced |
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STAMFORD, CONN., September 11, 2001 - According to Gartner, Inc. (NYSE: IT and ITB), a typical large business owns between 200 and 500 domain names and spends close to $100,000 per year registering, maintaining and defending them. Seven additional domains will be put into use within the next 12 months, with the .biz and .info domains scheduled to go live in early October. Gartner advises businesses to protect their corporate identities and product lines through strict domain name management.
"Managing domain names is becoming absolutely critical," said Ted Chamberlin, analyst for Gartner. "Businesses that do not have a strong domain management strategy risk losing precious enterprise mind share and may ultimately pay large legal fees defending itself against sabotage to its brand and corporate identities." Through 2006 and beyond, it will be 1,000 to 100,000 times more costly to recover a domain name from hostile ground than simple and proactive domain name management and registration. Gartner analysts said enterprises must implement a strategy that assigns domain names with importance corresponding to the enterprise's overall needs. Gartner suggests that domain names be assigned three different priorities: critical, important and secondary. Critical names are domains that are essential to the brand identity and awareness of the company or a specific product line. Companies will devote 65 percent of their money, time and effort in registering, maintaining and defending these names. Important names are domains that entail some time-to-marketing efforts or brand awareness, but are not essentially critical. An example would be if Coke or Pepsi designated a name such as "www.dietcola.com." A company may consider this important since the generic term is identified with its specific product, but at the same time, if a competitor registered the name, it would not negatively impact the other company. Companies should devote 20 percent of their money, time and effort in registering, maintaining and defending these names. Secondary names are domains that enterprises typically should not proactively register, but should be vigilant about the abuse or misuse of such domains and their potential to damage brand awareness of public perception of the company or brand. Examples include "yahooo.com" or "www.microsoff.com." These domain name variations are typically registered by parties that intend to divert Internet traffic away from a legitimate site, confuse the Web surfer or inflict harm on the targeted Web site. Companies should spend 15 percent of their time, effort and money in defending its names against such domain name variations, and the defense should consist of monitoring, recovery and arbitration. "The consequences of inaction can result in the brick-and-mortar equivalent of storefront destruction, or at least graffiti. Either way it will cost companies money. They shouldn't let others ransom or destroy their storefronts," Chamberlin said. More information is available in the Gartner Research Note "Domain Names -- The E-Sign to Your Business." This Research Note examines the importance of domain-name management, and it explains what companies should do to protect themselves. Gartner analysts will provide additional best practices insight during the upcoming Gartner Symposium/ITxpo 2001, October 8-12, in Lake Buena Vista, 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 press may contact Lisette Kwong at 212-320-2230 or at lkwong@tsicomm.com, to register for Gartner Symposium/ITxpo. Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. Gartner's divisions are Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner is headquartered in Stamford, Conn. 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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Contact: Danielle Westling Gartner 203 316 6754 danielle.westling@gartner.com |
