Finance Sector Rules the Java Kingdom

More than 60 percent of enterprises will adopt Java applications and technology by 2004, according to research by GartnerGroup.

According to Gartner’s report “Java at Work: Industries and Application Types,” the financial-services industry will lead the way, accounting for more than one-third of the total use of Java. The financial-services industry, which includes banking, securities and insurance, accounts for 37 percent of the total use of Java, and will continue to be the leading consumer of Java technology through 2004.

The finance industry is willing to take a risk on an evolving technology such as Java to gain a competitive advantage. Application developers in the finance industry predominantly use Java to create self-service applications, such as online banking, which will allow organizations to reach more customers, the research concludes.

“The financial-services industry realizes that self-service is a powerful paradigm for attracting clients and reducing costs,” said GartnerGroup Research Director Joseph Feiman. “And one of the most popular tools for developing self-service applications is Java.”

The finance sector is followed by higher education at 19 percent, and by retail/distribution at 11 percent. Manufacturing, healthcare, transportation, research, publishing and utilities have a modest Java presence, with each ranging from 4 percent to 7 percent.

Gartner’s research also shows that the Internet is the preferred Java deployment platform for 48 percent of organizations. Intranets follow with 37 percent, and extranets lag with 19 percent. Combined private networks (intranets and extranets) make up slightly more than 50 percent of Java deployment platforms.

Self-service applications are prevalent in more than 67 percent of total Java systems. These applications allow organizations to reduce costs by offering more services via the Web, and increase revenue by securing more customers. The most popular self-service systems in the finance industry, which constitute 37 percent of total Java systems, are used for functions such as loan calculation, loan applications, and bank account transactions.

Higher education is also taking advantage of Java technology, creating self-service applications for course registration and student record access. The retail/distribution industry, which has a vast online presence, deploys Java shopping carts, catalogs, and order entry and tracking applications.

Through 2004, US companies are expected to adopt Java more quickly than firms in other countries, outpacing worldwide penetration for new application development by 5 to 50 percent depending on country and geographic region.