The Payoff from Cheaper Web Tech

"Call it the perfect tailwind for the Internet. Demand for goods and services delivered over the Web has continued to grow rapidly even as the dot-com bust lowered the cost of Web technology. And it helps that the number of Web visitors keeps rising. 'Our growth has enabled us to leverage the costs of our network and data communications downward,' says Ajit Patel, CIO of clothing retailer Chico's FAS (CHS ). 'The [improved] economies of scale have allowed us to reduce the cost per transaction.' Indeed, Pourzanjani estimates that Pricegrabber pays 35% to 40% less than five years ago to run its Internet operations."