SIIA Announces the Ten Most Significant eCommerce Developments of the Last Decade

Ten Years After White House eCommerce Framework, Google, Wi-Fi and the Blackberry Rank Among the Most Important Developments --

WASHINGTON, July 11 -- The Software & Information Industry Association, the principal trade association for the software and digital information industry, today announced its list of the top ten developments that have had the most significant impact on electronic commerce since the White House released the "Framework for Global Electronic Commerce" ten years ago.

"Electronic commerce has provided a significant engine for the growth of the global economy and has sparked the delivery of a multitude of innovative products and services," said Ken Wasch, President of SIIA. "These developments reflect the unique nature of the Internet, which has allowed creativity, ingenuity and entrepreneurship to flourish."

Wasch continued, "It's no surprise to see Google rank as the most important eCommerce development in the last 10 years. But the list also includes several eCommerce tools that have become so commonplace, we almost forget they didn't exist 10 years ago. Ubiquitous broadband access, extensive Wi-Fi connectivity and access to open standards are simply fundamental to eCommerce today. The list also recognizes more recent developments -- such as iTunes and user-generated content -- which are in the process of dramatically transforming the way we work and live."

SIIA's Top Ten Most Significant eCommerce Developments of the Last 10 Years:

  1.  Google (Sept. 1998): Google did more to fundamentally change the way
      we use the Internet than any other event in the last 10 years. The
      simple search engine that began with a couple of smart guys is now
      used by 30% of Internet users to help find precisely what we're
      looking for online, map our world, create simple yet highly targeted
      advertisements and much more. Americans conducted 6.9 billion searches
      online in February 2007 and nearly half of those were on Google.

  2.  Broadband Penetration of U.S. Internet Users Reaches 50% (June 2004):
      When the Information Superhighway first opened, it felt more like an
      old dirt road -- until broadband released its full potential.
      Available and affordable broadband took longer than expected to arrive
      -- but when it finally reached 50% penetration in 2004, a milestone
      was reached that signaled a dramatic change in how commerce gets done
      online, how consumers use and share content, and how the world
      communicates. It took broadband roughly 4 years to reach 50% -- but it
      is estimated that it will reach 90% penetration of Internet users by
      the end of the year.

  3.  eBay Auctions (Launched Sept. 1997): eBay showed us that the Internet
      could be used to reach massive national -- and even global -- markets
      better and faster than ever before. The launch empowered hundreds of
      thousands of power sellers to quit their day jobs and work exclusively
      online. Individuals could also compete directly with each other in
      ways unimaginable in a physical market.

  4.  Amazon.com (IPO May 1997): Amazon showed the world what an online
      store would look like and made online shopping popular through its
      ease of use and wide selection. Amazon's public offering told the
      world that online commerce is legitimate and here to stay. It signaled
      the increasingly important role that eCommerce would play in the
      American economy.

  5.  Google Ad Words (2000) Key word advertising has become the biggest
      online advertising vehicle, representing 40 percent of that market and
      $6.8 billion in revenue. Keyword ads are the simplest and most cost-
      effective mechanism to reach targeted audiences, affordable to even
      the smallest business.

  6.  Open Standards (HTML 4.0 released -- 1997): The standards for the web
      embodied in HTML are overseen by the World Wide Web Consortium, which
      is not controlled by any company or government. The formats are open,
      well documented and designed to work with different software and
      hardware. It has probably been the most influential and important data
      standard in the history of publishing. Open standards can grow an
      entire industry, leaving more room and more opportunity for everyone.

  7.  Wi-Fi (802.11 launched - 1997): From desk to board room to beach,
      connectivity is never lost and communication is never delayed. The
      development of Wi-Fi removed the limitations of desktops and cables
      and shifted focus toward mobile solutions. Wireless Internet enabled
      road warriors to be connected anywhere in industries like real estate,
      transportation, travel, and financial services.

  8.  User-Generated Content (YouTube 2005): Right now it is impossible to
      say what the full ramifications of the "citizen journalist" era will
      be -- but the dramatic impact of YouTube tells us more than any other
      recent development. At first a playground for kids with video cameras,
      YouTube is now the embodiment of Web 2.0. It is a must-be-seen place
      for presidential candidates, a battleground in the copyright wars, a
      vital distribution point for major media -- and most of all, a place
      where anyone...absolutely anyone...can deliver a message to the
      world.

  9.  iTunes (2001): In the aftermath of Napster and the P2P battles, iTunes
      legitimized the digital music industry, revolutionizing the music
      industry. The importance of CDs declined while music as digital
      content grew, leading to developments in everything from Digital
      Rights Management software to increased bandwidth use. Today, more
      than US$2 billion worth of music was sold online or through mobile
      phones in 2006 (trade revenues), almost doubling the market in the
      last year. Digital sales now account for around 10% of the music
      market.

  10. BlackBerry (1999): The BlackBerry makes communication instantaneous,
      and mobile. A comprehensive communications device creates a new mobile
      business culture. Giving road warriors the freedom to move to any
      location and maintain connectivity increases cooperation and
      efficiency. By having the web in the palm of your hand, Internet
      connected devices enable eCommerce anywhere, anytime.

The Top 10 developments in eCommerce were ranked by policy and industry experts from a wider list of developments chosen by SIIA staff. Voting occurred over the past month.

SIIA unveiled the list today during an event marking the 10th anniversary of the White House eCommerce Framework. The event featured leading technology and economics experts. Ira Magaziner, the architecture of the White House report, provided the opening address. A distinguished panel moderated by Michael Mandel, chief economist of BusinessWeek, included Stewart Baker, Assistant Secretary, Department of Homeland Security; Dan Burton, Senior Vice President, Salesforce.com, Former President, Council on Competitiveness; Jamie Estrada, Assistant Secretary (Acting), U.S. Department of Commerce and John Patrick, President of Attitude LLC and former Vice President of Internet Technology at IBM, as well as Mr. Magaziner. The group discussed the eCommerce developments of the last ten years and made predictions about the future of eCommerce and the challenges it will face in the next decade.

An archived webcast of the event will be available on the SIIA website at http://www.siia.net/.

About SIIA

The Software & Information Industry Association (SIIA) is the principal trade association for the software and digital content industry. SIIA provides global services in government relations, business development, corporate education and intellectual property protection to more than 800 leading software and information companies. For further information, visit http://www.siia.net/.