Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Hewlett-Packard (HPQ) -- Ignore unavailable to you. Want to Upgrade?

To: PCSS who wrote (2079)	10/30/2002 1:11:35 PM
From: PCSS	Read Replies (2) \| Respond to of 4345

IBM CEO sees signs economy has flattened out NEW YORK, Oct 30 (Reuters) - International Business Machines Corp. (IBM) Chief Executive Sam Palmisano on Wednesday said he had seen some signs the economy had hit bottom or flattened out, but added that the tech sector has its own problems. "Even though we're faced with some very difficult short-term economic circumstances, they (customers) are ultimately optimistic about the long term," Palmisano told a meeting of about 300 IBM customers at the American Museum of Natural History. "In fact, as you travel around the world, you see some encouraging signs that perhaps we have hit the bottom, or things have flattened out," Palmisano said. "But from an information technology perspective, our industry has problems that are, I think, somewhat unique unto itself beyond the pure issues associated with economy." "Clearly we are suffering from hyper-growth, over-investment and expansion of the dot-com bubble," he said. Palmisano laid out a strategy to deal with that downturn, which includes an increased focus on more flexible computing and computing services that are built around freely available Linux software and industry standard technology. The Linux operating system has been gaining ground, in part due to a push by the computer services, hardware and software company to use it to run corporate computer systems. Palmisano said technology strategist Irving Wladawsky-Berger would head IBM's initiative to build on-demand computing -- or efforts to make pricing more flexible for businesses who have wide swings in their need for computing power. IBM has spent $10 billion to buy a new microchip plant, several integration software companies and PricewaterhouseCoopers consulting to move in the direction of flexible computing. Palmisano said such investments in a downturn were not risky. "Is it a big bet? Yeah, big bet. Bold bet? No doubt about it, it's a bold bet. Is it a risky bet? I don't think so. It's not a risky bet," he said. He said customers looking ahead should focus on IBM's research and development efforts, acquisition strategy, four new customer development centers and a new advertising campaign that kicks off today. IBM has been talking about on-demand computing for years, but it is not the only company moving in that direction. Hewlett- Packard Co. (HPQ) and Sun Microsystems Inc. (SUNW) have their own pricing based on the same model as a utility -- with customers paying for the amount of computing power they actually use.