ISPs get tools to help SMEs compete in online economy

1999-09-08

According to Forrester Research, small businesses’ share of the Web, in terms of revenues, is expected to decline from 9 percent this year, to only 6 percent in 2003. Bleak words indeed.

These predictions are understandable considering that the larger firms are more likely to have the resources to get themselves onto the Web. Even then, the inevitable shakeup of retail organisations is likely to spell doom for many small businesses. Is this just Fear, Uncertainty and Doubt about the future? Unlikely, as this is happening already both because of and despite the Internet. At the same time, however, the Web presents an unprecedented opportunity for businesses large and small: it is the great leveller in which all are equal. This is true, at least, for those companies which are online.

Today’s Internet shopper is becoming more discerning. It is not enough for a site to present a long catalogue of products and a telephone number for orders (although this has been a successful model in the past). Customers want sites to be fast and fun, informative and interactive. Such added value is raising the hurdle to newcomers whose first attempts at establishing themselves online are often proving less than successful.

Initiatives are underway to help resolve this. One set of tools, from Bondware, is directed at ISPs. The tools provide the set of functions to that the discerning surfer has come to expect, including chat rooms, newsfeeds, member pages, ad management and a host of other facilities. The most attractive thing about the package is the price: at $6000 for the basic license (which allows for 25 commerce sites), the cost of entry is lowered considerably, enabling the service providers to provide low cost service to their subscribers.

The advantage of this approach over the competition, for example, Microsoft’s Small Business Server, is that it is designed for ISPs who are the natural focus, in terms of providing both technology and experience, to help SMEs onto the Web. It also promotes continued development and competition, as ISPs can develop the range of services they provide, enabling companies to pick and choose from a number of ISPs. The other advantage is, of course, that it is available now.

(First published 8 September 1999)