** The World According To Gerstner

NEW YORK--The future, according to IBM CEO Louis Gerstner: Dot-
coms will fall by the wayside. Technology investment will be 
driven by "real business." Companies will access intelligent, 
flexible infrastructures delivered by just a couple dozen service 
providers. And Linux will be the dominant operating system.

Apparently, Gerstner, speaking Tuesday at the eBusiness Conference 
and Expo, really believes this. He said IBM will invest $1 billion 
in developing and marketing Linux next year. At the same time, he 
shed light on what IBM is calling the largest Linux implementation 
in the world--a supercomputer-class installation by Shell Oil in 
Amsterdam. Gerstner said another $4 billion has been earmarked for 
opening 50 host centers during the next three years.
 
Observers say Gerstner's emphasis on hosting is hardly surprising, 
given that it's one of the growth-challenged company's fastest 
growing units. "They have an E-services business that's growing at 
70% a year. You just don't notice it that much because they are a 
$95 billion company," says John Jones, a Salomon Smith Barney 
analyst. IBM pegs the current hosting market at $6 billion, but 
Gerstner forecast that full-blown "E-sourcing" will be a $55 
billion market by 2003. Gerstner also shed light on what IBM is 
calling the largest Linux implementation in the world--a 
supercomputer class installation by Shell Oil in Amsterdam.

Playing to IBM's strength in the large enterprise market, Gerstner 
said the demise of many high profile dot-coms proves that 
business-to-consumer E-commerce was a search for fool's gold. "The 
IPO alchemists have had their 15 minutes," he said. Now, he added, 
large enterprises are ready to push headlong into true E-business, 
defined by across-the-board integration of supply chains, customer 
service, order processing, logistics, employee communications, and 
numerous other processes.  - Paul McDougall


http://www.informationweek.com/story/IWK20001212S0001









***********************************************************
Ing. Juan Carlos Umanzor
Administrador de Bases de Datos 
Ricafoods Inc.
Email:   [EMAIL PROTECTED]        Tel. 298-1783
***********************************************************





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