With nearly every paradigm shift in history - from the invention of electricity, to railroads, to television - the world witnessed the first wave of excitement, anticipation, investment and, unfortunately, a lot of wasted money. I believe that the Internet will be no exception. Assuming that the lessons learned from history are correct, then the failures of the past few years will give rise to an incredible boom that will indeed change the landscape of doing business in the real estate industry.

In real estate, like other business sectors, everyone watched as players scrambled to be among the first to successfully harness this highly efficient communications medium. However, the billions of dollars thrown into the pool, in some ways, effectively helped to set up these pioneering efforts for sure failure.

Essentially, the industry forgot the fundamentals of the software development business. After close to 50 years of evolution, no magic formulas for developing great software exist. While languages and platforms have seen great advances, software development is still more art than science. Complex software cannot be built in short periods of time.

As such, it was unrealistic to believe that software development challenges for Internet-ready products could be overpowered with money. By trying, companies created a debt equity structure that prohibited a satisfactory investment return. And even if massive funding efforts could have sped up software development without creating an untenable equity structure, the hurdle of adoption rates would have likely thwarted further progress. Ultimately, people adopt technology slowly, and web-based technology is no exception.

Yet, at IBS, we believe that those who now give up on the Internet will truly miss the boat. If the first wave has set us up for the next, now is the time to keep a steady eye on technological developments as they continue to unfold. Real estate technologists are focusing intensely on developing viable, web-enabled products. At the same time, this next generation is being funded and developed more realistically.

Slowly, but surely, these various offerings will be integrated and woven together to produce an infrastructure that allows real estate professionals to conduct various aspects of their business in a more seamless and efficient manner via the Internet. Many trading partners - landlords, brokers, suppliers, tenants, etc. - and the products they use, will be linked together, breaking down inter-company barriers. Their systems, after significant planning and investment, will be able to seamlessly exchange information, when necessary, making various types of real estate transactions more efficient.

Transactions, such as electronic bidding and interconnected purchasing software, will enhance the procurement of goods and services. Tenants ordering work will be able to access the landlord's system directly. Data exchange during refinancing and purchase activities will be greatly enhanced, speeding up finance-related transactions.

At IBS, we have never lost faith that the Internet will change the way we do business, but we have always been skeptical about how fast that change would occur. We recognize that those real estate technology companies that not only rewrite their software for the Internet, but also work to connect their products with tomorrow's emerging portals and workflow solutions, will be the survivors.

I believe that history will show that the events leading up to the bust of 2000 were a blip on the radar screen. When the next wave hits, there will be no doubt of its impact. Technologists are now focusing on the real "metrics" and how they will work. The bottom line is that these products will take time to develop, and realistic burn rates for development and adoption rates will be the keys to their successful execution. In the meantime, real estate firms awaiting the next wave of Internet technology advances should stay patient, keep their eyes on the horizon and continue to believe.

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Founded in 1979, IBS has evolved from a well-known provider of automated property management and accounting solutions for owners, developers and professional managers involved in residential and commercial real estate, to serve an array of industries. The firm is nationally recognized as a respected provider of in-house computer management systems. Its Network Services team provides custom-designed Windows NT networks, from turnkey installation to project consulting and everything in between. Today, IBS offers a full line of information systems solutions that makes it a leading source for business automation. Every aspect of delivery - from hardware and customized software, to extensive on-site training, to service, support and ongoing system updates - is provided with an extraordinary level of care.