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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?


To: stockman_scott who wrote (15591)1/4/2003 1:31:28 PM
From: Lizzie Tudor  Respond to of 57684
 
that is a very interesting article Scott.

A few comments,
Information technology (IT) departments simply bought too many servers, storage devices, and PCs in preparation for Y2K, the introduction of the euro, and an e-commerce bonanza that, like an absinthe-induced hallucination, seemed very real at the time, but vanished following the dot-com crash.

I don't agree about e-commerce, I think it is living up to expectations in real terms. It is stupid to assume a recession that hits retail will not effect e-commerce, of course it will and nonetheless e-commerce is growing at a 30% clip. What if there were no recession, e-commerce might have even exceeded the estimates. This is consumer. B2b I agree never lived up to the promise. (so far).

Later on in the document-
Consider a company that has located its Web retail system and its financial system in the same conventional data center. If the Web retail system uses up all its capacity, transactions must wait their turn to be processed. Even though the financial system might be running at only 30 percent of its capacity, the retail system has no automatic way of borrowing from it.

Which of course is happening, that is why they used the example here, I'm sure this was quoted verbatim from some CIO somewhere. And it is deceptive too because most web retail systems don't have the transaction history they would like to have on customers to run analytics to sell more. Theoretically, you'd like to have everything that customer ever bought available to determine upsell possibilities. As it stands some of these web retailers can barely keep a year online and their current customer profiles.

These days, the disk storage business is looking a lot like the server market. "There has been growth in unit sales of servers, but not much growth in dollars and I think storage is beginning to take on that same characteristic," says Gartner's research vice president Roger W. Cox.

You have to contrast that with this-
1:48 pm PT Hewlett-Packard upped to Strong Buy from Outperformby SG Cowen (HPQ) 18.57 +0.37:

What I really get out of this article is that while overall IT spending is flat, software to manage data, blade servers, fibre/fabric storage and iSCSI are hot because they help in managing costs to get more out of hardware. This is exactly the kind of environment we had in the early 90s where some companies like oracle and peoplesoft were tremendous investments where others like IBM/Apple were lagging or crashing for whatever reason.