My VERY humble opinion is that we will see a significant PC upgrade cycle, beginning sometime in 2003. I am much less optimistic about the following upgrade cycle, I think the industry may be finally approaching a functional climax. Many folks have said that before... after this cycle it could be true.
I posted earlier (to Paul V) that we have a few drivers for enterprise software upgrades finally with the asian factory buildout. Any enterprise software implementations are going to require new PCs, the new model is "no footprint" which is resource heavy.
Today stockman_scott posted a Chicago-based article that mirrors this thinking, hey maybe I'll be right about something for a change (nah... can't be :-/) Lizzie
BorgWarner Inc., the biggest maker of auto transmission parts in the world, is also ratcheting up its IT budget 5% after holding back in 2002.
The Chicago-based company has been expanding overseas, particularly in the Far East and Europe, and needs to invest in its global telecommunications network and software applications so data moves more efficiently as the business grows, says Chief Financial Officer George Strickler.
BorgWarner's capital spending is slated to increase 7% in 2003, a pace mindfully below the company's anticipated 2003 sales growth of 8% to 10%.
Likewise, Cabot Microelectronics Corp. in Aurora is investing more than $5 million on new computer systems to connect its disparate systems in Europe, Asia and the U.S. The maker of chemicals used in semiconductor manufacturing, dominant in its specialty market niche, has spent millions over the past three years building plants and research centers in the U.S. and Asia.
"Everybody's cautious right now," says CEO Matthew Neville. "The mindset needs to be changed. We need to be doing things to instill confidence at this point."
Stricter financial reporting, required by the Sarbanes-Oxley Act that President George W. Bush signed into law in July, is also prompting companies to bring old financial computer systems up to date.
"A lot of firms have had a hold on expenses and now the business side is telling the IT side, 'We can't wait on these projects any longer,' " says Gregory David, president of the Chicago office of Homewood-based recruiter Gregory Laka & Co.
Staffing requests for permanent, full-time IT positions have surged in the past few months, especially for applications development, says Mr. David. Banks and finance firms have the biggest demand, but manufacturing firms are beginning to look for technology workers as well, he says...>>
Message 18363835 |
