Gartner Says Acceleration of Electronic Purchases Below $5 Will Drive Microcommerce Market to $60 Billion By 2015
Analysts Discuss the Impact of Emerging Technologies at Gartner Symposium/ITxpo 2004
LAKE BUENA VISTA, Fla., October 19, 2004 — Microcommerce opportunities for new products and services will generate an estimated $60 billion in revenue per year by 2015 according to Gartner, Inc. A micro purchase is a purchase valued less than $5 and conducted electronically, where the settlement can be either prepaid, by subscription, on-the-spot, or invoiced.
These findings were presented during the Gartner Symposium/ITxpo 2004, which is taking place here, October 18 through 22.
"Apple's iTunes music store was originally conceived as a driver for iPod sales, but it has become a shining example of how small electronic purchases can actually become a major revenue-driver for an entire company," said Jackie Fenn, vice president and fellow at Gartner.
According to Gartner, three intersecting major trends are driving microcommerce. First, more buyers and sellers can now easily locate each other through PC-based e-commerce and increasingly through m-commerce on wireless networks. Second, completing small transactions electronically is low cost. Finally, automatic location identification for targeted content and services is growing more prevalent and sophisticated.
"Online marketplaces that gain critical mass, such as eBay and Craigslist, already provide an infrastructure to link buyers and sellers cost effectively" said Ms. Fenn. "In the same way that eBay makes it economical for a person in Boston to locate and buy a $10 teapot from another state or country, the emerging mobile delivery and payment infrastructure will provide a framework for buyers and sellers to connect for new types of microservices."
Companies should identify whether their organization can leverage mobile and micropayment processes to economically deliver or consume services delivered in much smaller units. The availability of better micropayment systems, mobile connectivity, authentication, and more-granular products and services will transform today's commercial landscape.
"Organizations should consider microcommerce opportunities as a new way of increasing revenue where there was no viable deliverable model without the existence of the mobile or Web infrastructure," said Ms. Fenn.
About Gartner Symposium/ITxpo
Gartner Symposium/ITxpo is the IT industry's largest and most strategic conference, providing business leaders with a look at the future of IT. For more than 10,000 IT professionals from the world's leading enterprises, Gartner's annual Symposium/ITxpo events are key components of their annual planning efforts. Attendees rely on Gartner Symposium/ITxpo to gain insight into how their organizations can use technology to address business challenges and improve operational efficiency.
In Orlando, an integral part of the Gartner Symposium is the ITxpo showfloor, where more than 190 technology companies are showcasing the latest technology solutions. There are 13 ITxpo marketplaces, including mobile and wireless, business intelligence and data warehousing, IT services, security and a compliance pavilion. ITxpo marketplaces are focused areas designed to aggregate solution providers into a specific market and link conference topics to market solutions. Attendees can attend technology company presentations and schedule face to face meetings with exhibitors of their choice.
About Gartner:
Gartner, Inc. (NYSE: IT and ITB) is the leading provider of research and analysis on the global information technology industry. Gartner serves more than 10,000 clients, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company focuses on delivering objective, in-depth analysis and actionable advice to enable clients to make more informed business and technology decisions. The Company's businesses consist of Gartner Intelligence, research and events for IT professionals; Gartner Executive Programs, membership programs and peer networking services; and Gartner Consulting, customized engagements with a specific emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has more than 3,500 associates, including approximately 1,000 research analysts and consultants, in more than 75 locations worldwide For more information,
visit www.gartner.com.
