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To: Road Walker who wrote (136073)	5/25/2001 4:04:44 PM
From: John Koligman	Respond to of 186894

And along the same line of thought, another example from CNET... Regards, John Agilent belt-tightening plan: No more PCs By Reuters May 25, 2001, 11:30 a.m. PT Internet-economy linchpin Agilent Technologies, whose equipment tests the Web's parts before they are put into place, has a plan to slash its budget: quit buying personal computers. In a clear indication of how far companies can trim costs in tough times, Agilent is cutting "discretionary" information technology spending by 90 percent this fiscal year. "We don't buy PCs any more. We don't buy printers any more. We don't buy fax machines any more. We don't buy copy machines any more," Chief Operating Officer Alain Couder told Reuters on the sidelines of a meeting with analysts. Palo Alto, Calif.-based Agilent accelerated in March a program to reform and slim management systems after February orders fell off a cliff, Chief Executive Ned Barnholt said. "We're frankly trying to do without for a while as a means of saving money," he told Reuters. "Partly what we are doing is trying to change our IT spending pattern in general because of some of the inefficiencies that have been built in over the years. But I think everybody is looking at cutting back right now." At the same time, the company, a spinoff of Hewlett-Packard, is buying new powerful server computers and storage to host a handful of software programs to run the business. That includes offerings from Oracle, BroadVision and PeopleSoft running on Hewlett-Packard computers and EMC storage. "Our spending in terms of the new stuff is actually up," Barnholt said. "We feel we have to buy the latest storage products and server products to support these applications." The net effect will be a 20 percent to 30 percent cut in the technology budget from the roughly $1 billion Agilent would have expected to spend before the re-engineering, which also aims to centralize main technology systems, Couder said. Agilent's machines test 85 percent of the world's cell phones and many of the parts that are used to build the Internet, as well as specialized microchips and other gadgets. The decision by the technology company's technology company that it can get by without new PCs may illustrate a trend. "A lot of this is going on," said Salomon Smith Barney analyst John Jones, who saw global IT spending two to three percentage points below last year's level and a bigger drop in PCs. Agilent had a lot of fat to cut after splitting off from Hewlett-Packard, Barnholt said. Technology spending last year was roughly twice the corporate average, and employees had more than two personal computers each. It was also trying to convince analysts after disappointing second-quarter results announced last week that it knew what medicine to take and what opportunities lay ahead. "They've presented a very strong case," Goldman Sachs analyst Deane Dray said. Barnholt said he expected the downturn was a business cycle rather than the beginning of a recession, but he also repeated his forecast from last week, that Agilent would lose money in the current third quarter.

To: Road Walker who wrote (136073)	5/25/2001 5:35:56 PM
From: Saturn V	Read Replies (2) \| Respond to of 186894

Ref < "This is an ideal situation for new startups or a new predator like Intel, which has been hardened and toughened by the the brutal and incessant competition of the chip and microprocessor business !" AMD? > AMD ? NO WAY ! AMD does not know how to handle technical uncertainty and the risk of new and unknown markets. It has never pioneered new markets ! It waits for a promising new market to develop and then tries to deliver a cheaper or a marginally better product . Intel pioneered the microprocessor and prevailed over the Motorola 6800 in the 70's; the Zilog 8000, the Motorola 68000 and the NSC 32000 in the 80's; and the countless RISC threats in the 90's. To propagate a new computer architecture requires huge investments in software and hardware infrastructure. AMD did nothing to establish new architectures and cleverly rode on Intel's coattails. The efforts in the new communication spaces will be comparable to the task in establishing new architectures. In the 70's and 80's most of AMD MOS products were klones of Intel designs. When it could not do that legally it had a disastrous spell, until it finally acquired the design expertise. Even the name Athlon 4 is trying to ride on Intel's coattails ! AMD forte is good execution in a well defined marketplace. Once the communication market is better defined AMD could again become a factor.