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Cost of Junk Email to Exceed $10 Billion for American Corporations in 2003-Spam Plagues Wireless and Instant Messaging Services

Internet Wire

January 06, 2003

     SAN FRANCISCO, CA, Jan. 06, 2003 (INTERNET WIRE via COMTEX) -- Spam will cost American corporations more than $10 billion in 2003, according to a new report by Ferris Research, a San Francisco-based consulting firm.

     The report, "Spam Control: Problems and Opportunities" (www.ferris.com/url/spam.html), finds that spam accounts for 15 to 20 percent of inbound email at typical corporations, and 30 percent of inbound mail at ISPs.

     "Spam-related costs are increasing rapidly for both corporations and ISPs, mainly as a result of lost productivity, consumption of IT resources and helpdesk support," said David Ferris, president of Ferris Research. "Based on interviews of corporate messaging managers, it's clear that spam is a major problem for corporate IT departments. We estimate the total costs for spam in corporations were $8.9 billion in 2002, and will increase to $14 per user per month in 2003."

     Corporate users report that they expect the number of messages, as well as the average size of each message, to increase substantially in 2003, leading to even higher costs. In addition, some users expressed concerns that adult content spam has the potential to create corporate liability as a result of U.S. employment law. A pie chart showing the main components of spam costs is at www.ferris.com/offer/spamcost.gif.

     Spam is also becoming a major issue for operators of wireless services and instant messaging applications such as AOL Instant Messenger, MSN Messenger, Yahoo Messenger and ICQ.

     "Spam is getting frustrating for mobile users, and subscribers to Multimedia Messaging Services (MMS) will become spam targets as operators provide connectivity with the Internet," said Ferris analyst Marten Nelson. "Spam to instant messaging users is growing rapidly and is often in the category of adult content."

     The report also covers the growing economic opportunity for anti-spam products and services, which are now offered by more than a dozen organizations including Brightmail, MAPS, Postini, Trend Micro, Tumbleweed, ActiveState, Cloudmark and MailFrontier.

     "We see a number of potential approaches to the problem based around user education, industry initiatives, legislation and technology," Ferris said. "Anti-spam technology is the most promising area of development, but legislation will be completely ineffective in stopping spammers from sending spam."

     "Spam Control: Problems and Opportunities" is available from Ferris Research, www.ferris.com, for $1,995. People interested in purchasing the report should contact Ferris Research at walter.scheiber@ferris.com, or 415-986-1414 x103.

     About Ferris Research

     Ferris Research is a San Francisco-based market and technology research firm that specializes in messaging and collaboration technologies such as email, instant messaging, wireless handheld connectivity, and virus and spam control. Our main customers are vendors, service providers, and corporate IT managers. For more information, visit www.ferris.com or call +1 (415) 986-1414.

     Press Inquiries: Tel 011 44 20 7835 1001 until January 12 Tel 1 415 986 1414x02 after January 13

     For fastest response, send email to press@ferris.com

     Or contact David Ferris, david.ferris@ferris.com

     CONTACT: David Ferris

     011-44-20-7835-1001

(C) 2003 Internet Wire. All Rights Reserved

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