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Technology Stocks : Intel Corporation (INTC)

INTC 39.36

-0.1%

Jan 5 3:59 PM EST

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To: robert b furman who wrote (178746)	7/20/2004 1:42:33 AM
From: BelowTheCrowd	Read Replies (4) of 186894

My experience on the buying side of technology is that the hardware and software are increasingly disconnected. On the last project I upgraded an entire company from mix of Win98/WinNT4/Win2K to a more uniform setup with WinXP on the desktop and Win2K Advanced Server on pretty much all the servers. (Some software issues kept us away from the newer server products.) At the same time we also upgraded all the desktops with Office software (about 30% of the company) to Office2003. By all accounts, a fairly major upgrade of approximately 1000 PCs. The kind of thing MSFT is talking about. But at the same time I found that: Less than 10% of the desktop PCs we had needed to be replaced with newer ones. About 10% of the remainder needed HDD upgrades, and about half needed more memory. Since we had to bring the PCs into the lab for the software image upgrade, doing a quick memory or HDD switch was not a big deal to do simultaneously. The 10% that did need to be replaced, were mostly replaced with bottom-end PCs, which are more than adequate for the application clients used by the vast majority of our workforce. (We did add a few new high-power notebooks for a few of our finance/analysis people, and a couple of workstation for some graphic design types, but that's about it.) We didn't replace a single server, though there were a few memory and storage upgrades where we were already running into bottlenecks. Intel did not make a whole lot of money from this major Microsoft upgrade. I believe that situation is typical. In the past, you often didn't even bother upgrading software without doing the hardware at the same time, but these days it's harder to see a reason to do so. Until the software companies come up with softare that demands new hardware, the upgrades will be sporadic and often only in response to PCs that are no longer economical to repair or upgrade.

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