Corporate intranet use expected to grow 110% this year, new study reveals.

PALO ALTO, Calif.--(BUSINESS WIRE)--April 1, 1997--

Intranets Require Less Training, Lower Cost Than Client/Server Systems

Use of corporate intranets is increasing rapidly and is expected to grow by 110 percent in 1997 alone, according to the first major independent study of the subject published today by Creative Networks Inc., an research and information services company based here. The study reveals that training time and infrastructure costs for messaging and collaborative computing on intranets are at least half of what these applications require on client/server networks.

"This is the first study that documents the cost and value of intranets," said Nina Burns, CEO of Creative Networks (cni) and architect of the study. "The pay back is definitely there."

The cni survey involved a sample of 52 companies which have an average of at least 5,000 intranet users each. It showed that the average cost of training on intranets is 2.4 hours or $46 per user per year, as compared to 4.4 hours and $85 for comparable training on traditional client/server messaging systems. Annual per user cost of downtime is $66 on intranets as compared to $162 on client/server systems.

Other intranet costs are also reasonable, the study showed, with hardware and software setup costing companies $302 , and Web server fees, $1.21. Administration and management fees are still relatively high at $35. All figures are calculated on a per user per year basis, with 3.5 year life expectancy for systems and software.

Among the companies surveyed, the average number of users per intranet in late 1996 was 5,905. On average, companies expected the number of users per intranet to more than double, to 12,408, by the same time in 1997.

"More than 70 percent of the companies interviewed cited information-sharing or communications/collaboration needs as the driving force for intranet deployment," Ms. Burns said.

The new intranet study is based upon Creative Networks' standard methodologies, developed over several years, which utilize interviews with thousands of companies employing collaborative computing and intranet systems. The interviews are used to develop and substantiate the methods as well as to create baseline data for purposes of comparison, Ms. Burns said.

Further information can be obtained by contacting Kym Gentry, Creative Networks Inc., 480 Lytton Ave., Palo Alto, CA 94301.

(cni is a registered trademark of Creative Networks, Inc.)

CONTACT: Norma Rothenberg Kym Gentry

Roher Public Relations Creative Networks

212-986-2637 415-326-9926

[e-mail] [e-mail]