A lot of investors might be thinking bureaucratic red-tape, old legacy speed and strict regulations. But this is no time to sound warning alarms. Many analysts, including myself, are pegging B2G as the next big wave. The Internet was engineered to cut such tape. Physical and Intellectual boundaries can be broken, changing the ways in which people communicate, while providing access to information once hidden or unavailable.
Red tape equals transactions.
The Internet streamlines the process, reducing transactions and cutting costs, while benefiting B2G companies that are bringing local, state and federal government online and helping these entities cut costs and become more efficient. International Data Corp. estimates the number of users accessing the Web will increase from approximately 100 million in 1998 to approximately 320 million by the end of 2002. As an industry, government reaches the most people and spends the most amount of money. B2G e-commerce infrastructure providers and infomediaries will provide the tools and speed to get government online. B2B offers much reprieve from B2C where online book shops and toy stores can theoretically be created in just days.