Thursday, March 16, 2006

 

Don't stop shipping physical products just yet...

Here's an interesting article from Business Week which claims that Web adoption in the U.S. has now reached saturation point - an underwhelming 64% of all Americans have net access. The expectation is that web usage will only increase by 1 percentage point this year. In addition, it's not just the old and elderly who are not going online. "Some 39% of the Netphobes attended or graduated college or have at least some associate degree training. And 29% are 44 years old or younger." (The source is a research study from Parks Accociates in Dallas).

The takeaway for managers involved in software distribution is that a large segment of the end-customer base will not go online for the foreseeable future. Software strategies need to think in terms of hybrid distribution: online and physical.

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