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Thursday - August 10, 2000

Race to Provide Emarketing Services Heats Up

What began as a slow crawl to enter the emarketplace services industry in 1999 has turned into a flat-out sprint this year. According to IDC, service providers from all walks of life including systems integrators, management consultants, Internet service firms, and pure-play emarketplace services firms are racing to the finish line to be among the first to provide these services.

"The increased speed of movement on the part of service firms is directly related to the amount of opportunity within the emarketplace services industry," said Dr. Leo Lipis, senior analyst for IDC's eMarketplace Services research program. "The development, deployment, and management of emarketplaces represent a fast-growing opportunity, and all types of services providers are expanding and aligning their offerings to be better positioned to meet the needs of emarketplace clients."

According to IDC, the consulting and implementation provided to deploy the emarketplace represent only a small piece of an enormous opportunity. "Not only does an emarketplace need to be integrated with numerous participants, but those participants need to have the front-end emarketplace integrated with their own back-end systems," Lipis said. "For the service firm, this represents an opportunity to derive ongoing revenue from one initial contract."

Types of services needed by emarketplace clients include support services, business strategy, marketing and branding, user interface design, research, and development, application development and integration, network development and integration, and site operations and management.

As in the Internet services market as a whole, emarketplace service firms are working hard to meet the needs of startups. Some are accepting equity as a payment, and others are providing incubator services.

According to IDC, the service providers who win the race and are among the first to build and operate emarketplaces will be adorned with lucrative awards.

"Being an early leader in building and operating emarketplaces will provide competitive advantage in acquiring subsequent business. When we spoke with vendors, they said experience was one of their top three criteria when choosing an external service provider to help develop their emarketplace," said Pooneh Fooladi, an analyst with IDC's eMarketplace Services research program. "The service firms that build and operate the emarketplaces will have the advantage in providing integration services to them and their participants."


When Websites Play Doctor
According to Business Week:

"Nervous? Suffer from muscle aches? If some Web sites are to be believed, you may be harboring irksome parasites. Luckily for you, there's a solution: The Original Parasite Zapper, a battery-operated device that, together with certain herbs, will rid you of viruses, bacteria, and other pests. Just fork over $75, and you're on your way to being bug-free. Or maybe you've got more serious problems. With a few quick clicks of the mouse you'll find Web sites chronicling miraculous recoveries from cancer, diabetes, lupus, and a host of other ailments. For just $14.95, you can learn a self-healing method prescribed by the world's largest ''medicineless'' hospital, in China. Here, among other things, you will discover the secret to spontaneous remission of bladder cancer.

Cyberspace is awash in so-called e-health sites, spawned by consumers' unquenchable thirst for medical information. George D. Lundberg, editor-in-chief of a well-respected site called Medscape.com, figures there could be anywhere from 20,000 to 2 million such sites, including pages from university medical departments..."

Click here for the full story.

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Return to August 2000 News Archive