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StorHouse - The eBusiness Warehouse (eBW) - Page 4

Bandwidth Allocation
Bandwidth allocation has been, and continues to be, a challenge. Nielson's law states that bandwidth will continue to lag behind demand. Moreover, Nielson's Law claims Internet bandwidth grows by 50% each year.

There are three reasons for the lagging increase of Internet bandwidth:

  • Telcos are conservative (in terms of investment and time)
  • Users are reluctant to invest in bandwidth
  • Internet user base is getting broader, not deeper (resulting in average bandwidth requirements shifting lower)

Information Storage & Retrieval
Another, perhaps more challenging, issue of eBusiness infrastructure is the information storage and retrieval requirements. In fact,

  • eBusiness organizations' storage growth is exploding at a rate of 400%/year
  • By 2002, 75% of incremental storage demand will be eInfrastructure related, with expected revenues of $30 billion
  • Within two years more than 75% of server sales will be to support eBusiness initiatives, with expected server revenues near $80 billion.

As the chart below illustrates, for a typical business, the rapid growth in incremental storage demand will be fueled by eBusiness information.

Again, the chart above shows two important facts:

  1. For a company engaged in eBusiness, the amount of information generated will increase by 400% each year.
  2. By 2002, 75% of the company's information storage requirements will be eBusiness related.

Considering this increase in eBusiness generated information, the next logical question becomes "What exactly is this information, and where does it come from?"

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