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To: Neil S who wrote (22520)	6/10/1999 12:32:00 PM
From: Fang Li	Respond to of 29386

News from IBM Global Service news.com IBM Global Services expects boost from e-commerce By Bloomberg News Special to CNET News.com June 10, 1999, 9:10 a.m. PT IBM's Global Services unit, the fastest-growing business at the No. 1 computer maker, expects margins and profit to improve as more customers rush to set up shop on the Internet. "We see electronic-business growth over 20 percent by 2002," in terms of revenue, said Doug Elix, general manager for IBM Global Services' Americas division, speaking at the PaineWebber Growth and Technology Conference in New York. He didn't make a specific forecast for profit. Last month, Chairman Louis Gerstner said IBM gets about $20 billion, or a quarter, of its annual revenue from electronic business. The company has made e-business the center of its strategy to unite its disparate businesses, hoping to encourage companies to use its hardware and software as well as its computer services to get online. Today, Elix said once companies contact Armonk, New York- based IBM's services division to get up and running on the Internet, they tend to stay as customers. IBM's first-quarter services revenue rose 19 percent to $7.6 billion, compared with 15 percent growth in total sales. Profit surged 42 percent. Elix said the services unit now has contracts totaling more than $55 billion, ranging from setting up Web sites to running entire corporate computer networks, including a $200 million contract to install computers at British Telecom, the United Kingdom's biggest phone company. Earlier this year, it also teamed with Telefonica in an estimated $3 billion agreement to sell more services in Spain. Elix said IBM Global Services' revenue growth now exceeds that of rivals such as Electronic Data Systems and Computer Sciences, and shows no signs of letting up. Copyright 1999, Bloomberg L.P. All Rights Reserved. FREE Newsletter sample >