ISPs Develop Into Product Channel

PRNewswire
JERICHO, N.Y.
May 14, 2001

Internet service providers (ISPs) are selling a full range of software and hardware to their business customers, indicating that ISPs have developed into a full-fledged sales channel for high-tech products, according to a study by Reality Research & Consulting.

Reality finds the top products sold by ISPs are Internet and network-centric, as ISPs expand on their business models of providing Internet access and connectivity services. Out of an estimated 10,000 ISP organizations in North America, Reality Research estimates that more than half sell Internet-related software such as Web server, browser, e-mail or groupware. Networking hardware products frequently sold by ISPs include routers, hubs or switches.

Business customers of these ISPs tend to be in the services sector. ISPs are actively selling to retail, Internet/Web site development and financial investment services sectors. More than two-thirds of the estimated 10,000 ISPs sell to each of these sectors.

These findings are based on 150 telephone interviews completed with ISPs in the United States and Canada. The respondents in the survey are executives at companies that resell Internet access or connectivity services to end-customer businesses. Reality Research conducted the survey with ISP sample obtained from CMP Media Inc.'s Network Computing and InternetWeek publications.

"The service focus of ISPs reflects the importance of Internet access and connectivity to service businesses," said Elizabeth Gallagher Caginalp, Director of Research Operations at Reality Research, a leading market research and analysis firm. "Their product sets are consistent with the business focus on Web services."

Reality Research & Consulting delivers strategic and tactical market intelligence and analysis on the IT market and channels. Its client list includes major technology companies, such as Hewlett-Packard, IBM, Intel, 3Com and Microsoft. Reality is an independent business unit of CMP Media Inc. It is based in Jericho, NY, with offices located in Waltham, MA and Redwood Shores, Ca. For a complete listing and description of Reality's products and services, visit http://www.realityresearch.com/.

CMP Media Inc. (http://www.cmpnet.com/) is a leading high-tech media company providing essential information and marketing services to the entire technology spectrum-the builders, sellers and users of technology worldwide. Capitalizing on its editorial strength, CMP is uniquely positioned to offer marketers comprehensive, integrated media solutions tailored to meet their individual needs. Its diverse products and services include newspapers, magazines, Internet products, research, direct marketing services, education and training, trade shows and conferences, custom publishing, testing and consulting.

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SOURCE: CMP Media Inc.

Contact: Elizabeth Gallagher, 516-733-8698, egallagh@cmp.com, or Richard
March, 516-733-8645, rmarch@cmp.com, both of Reality Research

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