Zeev's Turnips Patch-No Politics (ZEEV)

[Fletch]

What to expect in tech in 2003

(FORTUNE.COM) -- Expect a desultory 2003 for the technology industry. Businesses will begin to extract more productivity gains from technology, but the hardware and software industries will not benefit accordingly. Corporate customers drive most tech spending, and they will still be thinking more about getting value out of what they've already got than spending money on new stuff. With sales growth anemic, only the strong vendors will survive. Consolidation, especially in software, will be a major trend of 2003. The recent purchases of Rational Software by IBM and Precise Software Solutions by Veritas are the tip of the iceberg. Expect also more acquisitions by cash-rich Microsoft.

Expected to do well

All is not grim, however. Here are a few companies I expect will do well in 2003:

• AMD: continues to challenge Intel with well-conceived designs for PC microprocessors.

• BEA Systems: middleware for enterprise software widely regarded as the best, despite vigorous competition from IBM.

• Borland: multi-platform application development tools are perfectly positioned.

• Dell: taking market share in every area of standardized hardware, including storage and networking.

• Logitech: unstoppable maker of consumer PC peripherals.

• Mercury Interactive: software performance measurement extracts value from what companies already have.

• Nokia: cellphones are hot and this remains the undisputed leader.

• Salesforce.com: its Net-delivered sales automation is defining a new approach. Expect an IPO this year.

• Veritas: storage software for the multi-platform future.

http://www.cnn.com/2003/TECH/ptech/01/01/fortune.ff.tech.expect/index.html

---------------------------------------------------------------
At least there is a bright spot or two here and he likes MERQ.
Fletch