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To: GST who wrote (144571)	8/2/2002 12:54:42 PM
From: Oeconomicus	Respond to of 164684

Interesting article. One point I'd make in response, however, is that there may be a very reasonable explanation for the rise in software relative to hardware in IT spending. Costs of hardware have fallen dramatically because the manufacturing costs, component costs, etc. have fallen dramatically. Software, OTOH, is still relatively expensive to produce and deliver because the biggest production input is manpower. Productivity improvement in software industry labor surely can't come close in terms of cost reduction to the decline in hardware costs. Perhaps the shift to higher software dollars to hardware dollars is a permanent shift. Bob