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To: Harvey Allen who wrote (22987)	3/19/1999 11:13:00 AM
From: Harvey Allen	Respond to of 24154

IBM Says Market For 'Net Devices To Heat Up HANOVER (Reuters) - International Business Machines Corp (NYSE:IBM - news), the world's largest computer maker, said Friday that competitors in the market for Internet devices will fight a decisive battle within the next 18 months. Mark Bregman, General Manager at IBM's Pervasive Computing division, told Reuters in an interview that the winners will be the companies which can provide consumers with uncomplicated and focused devices. The losers will be companies like software giant Microsoft Corp (Nasdaq:MSFT - news) which produce powerful but complicated devices, according to Bregman. Microsoft told Reuters Wednesday that, on the contrary, it felt well placed to succeed in the devices segment. We will soon know the answer to these counter-claims, said IBM's Bregman. ''In five years this will get settled, in fact I think it will get settled in the next 12 to 18 months. In World War Two, in retrospect we knew when the decisive battle was, but it took a long time afterwards to get the thing finished,'' Bregman said at the annual CeBIT technology fair. Bregman said the Microsoft approach worked well in the business world, but would be less attractive in mass markets. ''The business model that Microsoft has is very suitable when you are in the platform business because then the customer wants to know it can run all these applications. But in the appliance market you don't care anymore. What's the operating system in your cellphone? You don't know because you don't care,'' Bregman said. dailynews.yahoo.com