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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: TigerPaw who wrote (8380)	10/24/2002 3:34:15 PM
From: stockman_scott	Respond to of 89467

Merrill on Tech Spending... Merrill Survey Suggests Tech Spending Boost In Mid-2003 By Peter Loftus, Of DOW JONES NEWSWIRES Thursday October 24, 12:03 pm ET NEW YORK -(Dow Jones)- Corporate spending on technology should accelerate beginning in mid-2003, if a survey of chief information officers by Merrill Lynch & Co. is any indication. In the Merrill survey of 75 U.S. CIOs and 25 of their European counterparts, some 31% of respondents - the biggest group - said demand for technology would increase in the second quarter of 2003. About 18% pegged the first quarter for a pickup, while 20% forecast the third quarter. Steven Milunovich, the Merrill tech strategist who conducts the periodic survey, wrote that the weighted average of these responses "suggests a pickup beginning around mid-2003." The technology sector has been battered in the last two years because the weakened economy has forced companies to reduce spending on computers and networks. The steep drop in tech stocks has been the driving force behind the 70% decline in the Nasdaq Composite Index since its record high in March 2000. But Milunovich acknowledged the difficulty of predicting a turnaround in tech spending, saying it hinged on certain factors. One of these is corporate profits, which Milunovich said must increase before companies will boost tech spending. "Given our more cautious view, we doubt a meaningful recovery will occur until 2004," he wrote. Whenever a rebound materializes, it might not lift all boats, the survey suggested. Another part of the survey had mixed news for the prospects of leading tech firms. Merrill asked CIOs if various tech vendors were becoming "more or less important to you." For each of the following firms, more respondents said the companies were becoming "more important" to them than respondents who said they were becoming " less important": Microsoft Corp. (NasdaqNM:MSFT - News) , the software market leader; Cisco Systems Inc. (NasdaqNM:CSCO - News) , the data network equipment leader; Oracle Corp. , which makes business software; computer-maker Dell Computer Corp. (NasdaqNM:DELL - News) ; and International Business Machines Corp. (NYSE:IBM - News) , the hardware and services giant. The responses didn't bode well for others. More respondents said the following vendors were becoming less important to them than those who said they were becoming more important: Hewlett-Packard Co. (NYSE:HPQ - News) , a computer and printer maker; Sun Microsystems Inc. (NasdaqNM:SUNW - News) , which makes computer servers; Electronic Data Systems Inc. , a technology outsourcing firm; storage provider EMC Corp. (NYSE:EMC - News) ; and SAP AG , a German business software maker. Merrill disclosed that one or more of its analysts responsible for covering stocks mentioned in the survey own shares in Microsoft and Oracle. Also, Merrill has conducted investment-banking business for IBM, EDS and Cisco within the last three years. Merrill said it intends to seek banking business with all 10 companies mentioned above in the next three months. -By Peter Loftus, Dow Jones Newswires; 201-938-5267; peter.loftus@dowjones.com biz.yahoo.com