Executive Summary (This is a document excerpt)

Demand for eCommerce solutions will continue to bounce back in 2004, as businesses and governments expand their online presence to keep up with growing consumer interest in buying goods and services via the Internet. However, demand for licensed software solutions will be flat to down; most enterprises will seek a cheaper and easier way to support what they view as a secondary channel for sales. Growth will be strongest for hosted services, both for front-end online storefronts and for back-end order fulfillment. Still, the limits that hosted services place on the degree of control and customization that enterprises can have on their hosted online stores will constrain customer demand for this option. To try to increase demand, we expect new or existing vendors to offer more customized hosted offerings at prices that are higher than those for standard hosted products but less than prices for licensed eCommerce solutions.

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