Microsoft Launches Complete Commerce to Tap into Emerging Market for E-Commerce

Strategic Insights -

Microsoft has created Complete Commerce, a package of Web hosting, development, and technical support for electronic commerce sites, in an effort to capitalize on the growing demand for e-commerce solutions. The software giant has partnered with technology companies such as Intel, Compaq, and 10 commercial hosting services to offer a comprehensive solution for mid-sized to large businesses. The program is designed to meet the needs of Fortune 2000 companies, with pricing varying depending on the size of the sites to be hosted.

Key Takeaways:

  • Microsoft has created Complete Commerce, a package of Web hosting, development, and technical support for electronic commerce sites.
  • The software giant has partnered with Intel, Compaq, and 10 commercial hosting services to offer a comprehensive solution for mid-sized to large businesses.
  • The program is aimed at Fortune 2000 companies, with pricing varying depending on the size of the sites to be hosted.
  • A typical configuration offering business-to-consumer e-commerce would cost roughly $50,000 to build and host for three months.
  • Contracts also include a maintenance fee.
  • Microsoft has a history of involvement in e-commerce solutions, having previously introduced E-Commerce Quick-Start in August alongside Hewlett-Packard and smaller vendors and consultancies.
  • Estimates of worldwide e-commerce potential vary widely, with IDC predicting $400 billion in revenue by 2002 and Forrester Research predicting between $1.4 trillion and $3.2 trillion in 2003.
  • Forrester's high estimate would represent nearly 5% of all global sales.

Statistics:

  • Worldwide e-commerce revenue to reach $400 billion by 2002, according to IDC.
  • Global Net audience to jump from 100 million by the end of 1998 to 320 million by 2002, according to IDC.
  • Worldwide "Internet commerce" sales to reach between $1.4 trillion and $3.2 trillion in 2003, according to Forrester Research.
  • Forrester's high estimate of $3.2 trillion in 2003 would represent nearly 5% of all global sales.
  • A typical configuration offering business-to-consumer e-commerce would cost roughly $50,000 to build and host for three months.
  • Contracts for Complete Commerce include a maintenance fee.

Sources:

  • COMTEX (http://www.comtexnews.com)
  • International Data Corporation (IDC)
  • Forrester Research