Gateway and Verio Form Strategic Alliance to Empower Small Businesses with Internet Services

Strategic Insights -

The alliance between Gateway and Verio will enable small and medium-size businesses to tap into the vast potential of the Internet by providing them with comprehensive e-business services. This strategic partnership combines Gateway's business division with Verio's expertise in web hosting and e-commerce, offering customers a wide range of products and services to enhance their online presence. Through this alliance, Gateway's SMB customers will gain access to a suite of world-class e-business solutions, including state-of-the-art PCs and servers, web hosting, e-commerce capabilities, and domain name registration.

Key Takeaways:

  • The alliance between Gateway and Verio aims to empower small and medium-size businesses to leverage the Internet for growth and success.
  • The partnership brings together Gateway's expertise in business technology with Verio's leadership in web hosting and e-commerce.
  • Gateway's SMB customers will have access to a comprehensive suite of e-business services, including web hosting, e-commerce capabilities, and domain name registration.
  • Initial offerings from the alliance are available today, with additional services, including e-commerce, DSL, dedicated, and dial-up Internet access, scheduled to be launched in June.
  • Gateway will help customers bundle these services into customized e-business solutions, tailored to meet their individual business needs.
  • The alliance will focus on expanding the functionality of core services, such as storefront creation, merchant payment services, and other application hosting solutions.
  • The partnership will also enhance the existing operations of Verio, including the integration of Gateway servers in Verio's data centers and the use of Gateway PCs in Verio's business operations.

Statistics:

  • The market for U.S. Business Internet Services is projected to grow to $56.6 billion in 2003, from $7.7 billion in 1999. (Forrester Research, Inc.)
  • Web hosting services are projected to increase from $2 billion in 1999, to $14.7 billion in 2003. (Forrester Research, Inc.)
  • The application hosting market, including e-commerce, is projected to grow from 1999's $0.09 billion, to $11.3 billion in 2003, with small and medium-size businesses accounting for $10.5 billion, or 93 percent of that market. (Forrester Research, Inc.)
  • Verio supports over 395,000 hosted web sites around the world.
  • Gateway generated $8.65 billion in total global revenue in 1999.
  • Gateway shipped 4.68 million systems in 1999.

Sources:

  • Forrester Research, Inc.
  • Verio Inc.
  • Gateway Inc. (NYSE: GTW)
  • Harris Interactive
  • Reputation Institute
  • The Wall Street Journal
  • GartnerGroup/Dataquest US PC Quarterly statistics.