Glory Days For PC Vendors Will End In 2000, Study Says - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Glory Days For PC Vendors Will End In 2000, Study Says

Corporate PC spending will peak in 1999, then sharply decline after the year 2000, according to a report released today by Forrester Research.

According to the report, which is based on spending plans collected from 50 Fortune 1,000 companies, corporate spending on PCs is expected to hit a high of $55.4 billion in 1999, up from 1998's $53.5 billion. The increases come as companies look to replace outdated desktop hardware that may not be year 2000-compliant. Spending is expected to plateau late in 1999, then drop to $47 billion in the year 2000 once companies have completed the upgrades.

Two-thirds of the companies surveyed indicated they'll spend money developing applications that support PCs with browsers, rather than upgrading PCs. Businesses will increasingly focus on less-expensive Internet-based equipment, such as PalmPilots and "simple screen" machines that don't have full-fledged functionality but are tailored to perform specific tasks.

Carl Howe, Forrester's director of computing strategies services, believes the changes in the PC market will result in increased competition, price slashing, and consolidation. "Our view is that the top five [vendors] will get more share by taking it away from second- and third-tier vendors," Howe says. "But when you're trying to steal market share, the weapon is price, so even if you're winning, you're shipping more units but not gaining revenue."

Howe predicts that in such a market, services will be a much stronger selling tool. "That's good news for folks like Compaq: Their acquisition of Digital will pay back in spades. But folks like Dell who look outside for services won't fare so well," he says.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
News
The State of Chatbots: Pandemic Edition
Jessica Davis, Senior Editor, Enterprise Apps,  9/10/2020
Commentary
Deloitte on Cloud, the Edge, and Enterprise Expectations
Joao-Pierre S. Ruth, Senior Writer,  9/14/2020
Slideshows
Data Science: How the Pandemic Has Affected 10 Popular Jobs
Cynthia Harvey, Freelance Journalist, InformationWeek,  9/9/2020
Register for InformationWeek Newsletters
Video
Current Issue
IT Automation Transforms Network Management
In this special report we will examine the layers of automation and orchestration in IT operations, and how they can provide high availability and greater scale for modern applications and business demands.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll