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 : Information Architects (IARC): E-Commerce & EIP -- Ignore unavailable to you. Want to Upgrade?

To: Secret_Agent_Man who wrote (8998)	11/25/1998 3:05:00 PM
From: JDN	Read Replies (1) \| Respond to of 10786

To all: I understand 60 minutes is going to do a serious story on the Y2K problem this Sunday. Perhaps that will be the incentive to get things moving. JDN

To: Secret_Agent_Man who wrote (8998)	11/25/1998 3:14:00 PM
From: Larry Brew	Respond to of 10786

newmillenium, I started 'backing up the truck' only to find that the sucker is full. When ALYD hits 17, I'll buy a bigger truck. Larry

To: Secret_Agent_Man who wrote (8998)	11/25/1998 3:39:00 PM
From: Chuck Hekman	Read Replies (1) \| Respond to of 10786

There does not seem to be any buying pressure this afternoon. Mostly selling, with the price dropping rather quickly. I don't know why, except that maybe those that bought at 6 at locking in their profits. Does any know if the market is closed on Friday? Happy Thanksgiving to all. Chuck

To: Secret_Agent_Man who wrote (8998)	11/28/1998 8:06:00 PM
From: Secret_Agent_Man	Read Replies (1) \| Respond to of 10786

CRN/Gallup Spending Poll -- Y2K Concerns Pump Up Service/Support Spending -- Services And Support Take Larger Chunk Of 1998 Expenditures John Roberts & Keith Burbank New York -- Year 2000 compliance bolstered large-company IT spending in August and September, helping push total spending for the third quarter up 14 percent in dollar terms, according to the latest CRN/Gallup Organization Inc. survey data. Previous CRN survey data has shown that for most large companies, year 2000 spending would be in addition to, and not in place of, other planned IT spending. Of 200 large companies surveyed in August, 78 percent said year 2000 spending would be in addition to other spending, while only 14 percent said it would be in place of other spending. The other 8 percent were not sure. Spending figures for August and September show this is in fact what is happening. Large companies spent an average of $422,000 on IT products and services in August and $408,000 per firm in September. Both of these figures are well above year-earlier levels and also are higher that June and July figures. Service and support was one key factor behind these increases. An average of $77,000 per firm was spent in this area in August and $73,000 in September. These figures are higher not only on a year-over-year basis, but are also well above the June and July numbers. This result reflects the increasing concern large companies are giving to year 2000 issues. Nineteen percent of large-company MIS executives surveyed last month said year 2000 compliance was a main reason why they boosted spending in August and September. This was up from 12 percent in the previous survey, which took place in August, and was second only to internal budget considerations (21 percent) on the list of key factors behind spending increases. Other factors behind the jump in large-company spending in August and September include specific business or project needs, which was cited by 18 percent of MIS executives. Company expansion was listed as a reason by 10 percent of these executives. Interestingly, only 4 percent cited Windows 98 upgrading, the same as in the August survey. For the full third quarter, total IT spending by large companies increased 14 percent in dollar terms to an average of $1.2 million per firm, compared with the third quarter of 1997. Service and support, as well as notebooks, were the two categories that saw the largest spending increases, not only in percentage terms but in dollar terms as well. Service and support spending averaged $201,000 per large company in the third quarter, up a strong 41 percent on a year-over-year basis. Notebook spending averaged $195,000 per firm in the quarter just completed, some 52 percent above the figure for the third quarter of 1997. Peripheral spending also was higher, jumping 18 percent in the third quarter. Networking software realized a 6 percent increase, while spending on networking hardware was nearly unchanged. The only category seeing a significant drop in dollar spending last quarter was desktops. While still the largest single spending category, large companies spent an average of $383,000 for desktops, down 5 percent from the $404,000 figure in the third quarter of 1997. However, this decline in dollar spending reflects the sharp drop in desktop prices in the past year and not a drop in actual unit sales. But storm clouds may be looming on the horizon. In last month's survey, 43 percent of MIS executives said a recession was very likely or somewhat likely within the next six months. This is up from 34 percent in the August survey and only 18 percent as recently as June. The 43 percent figure last month was the highest reading since October 1993. Whether or not a recession will occur remains to be seen, although slower economic growth is almost a certainty. Under these circumstances, previous CRN research has shown that large companies often reduce the growth of IT spending. CRN's forecasts of spending in the first quarter of 1999 reflect these concerns (see related story), although categories such as service and support likely will be spared any significant impact from the budget ax, given the fact that many large companies are still not year 2000 compliant.