Internet economy grows 68%, creating 2.3m jobs in the US: Cisco

BANGALORE: According to Cisco Systems Inc., the Internet economy grew by 68 per cent from the first quarter of 1998 to the first quarter of 1999, generating an estimated $507 billion in the US, creating 2.3 million jobs. As per a study conducted by the University of Texas, revenue generated from the Internet grew from $64 billion in the first three months of last year to $108 billions in 1999, recording an increase of 68 per cent. The study was sponsored by Cisco Systems.

The Internet economy, up from $301 billion in 1998 to an estimated $507 billion for 1999, today generates more annual revenue than traditional American industries such as telecommunications ($300 billion) and airlines ($355 billion). As per the study, e-commerce, the amount of business conducted directly on the Internet, increased 127 per cent from the first quarter of 1998 to the first quarter of 1999. Of the 3,400 businesses surveyed to measure the size of the Internet economy, more than one third did not exist before 1996. Those new businesses now employ 3,05,000 people.

"The fact that the Internet economy rose so much in just one year underscores the fact that companies are embracing the Internet and that an Internet revolution is reshaping the economic landscape,'' says Cisco Systems President and CEO John Chambers.