Quote from gnome:
Interesting point... With the capacity overhang and lack of consumer demand issues, the ugrade cycle is definitely in question. The Powers keep talking, "... we need the consumer to keep hanging in there [spending] until the capex cycle kicks in..." That's just more stupid- talk. Business will replace and upgrade obsolete, but that's small. If there's not a consumer spending wave lurking (and there is not, because of huge debt), business has no need to "carry the economy" with big capex.
The Gubmint and Talking Heads are just lying out loud, as usual.
The sadder piece for me is that this is being equated to a slow business economy. Nothing could be further from the truth for most of my clients. They are finally starting, starting mind you, to truly use all that computing capacity.
Four secretaries are now effieiently doing the work of six so no new hires are needed. Rather than hire two new guys out in the warehouse, they are computerizing the inventory and coordinating it with hardware that scans. Inventory is really being ordered as needed based on demand rather than having it on hand as in the past. But this is not being factored in properly on the street, IMHO.
Upgrades? There is so much out there now that I don't honestly see the need for newer products. There are many operations out there still using Win95 and pentiums. Happily! Successfully! There are plenty of places where Win98 and PII's will handle everything they could ever want to do. And they ain't upgrading. And to them I would say, "Good decision!"
Somehow the talking heads see this as "not a good thing" and they're waiting for this spending surge. I don't view it that way. And that doesn't make the economy bad either.
Spend for spending sake? Intell and AMD have a new chip that needs cost recovery through public purchases. Well, I don't see the real need and I advise most of my clients against it. I say the business community and cycle is fine, just growing to fit what it already has.
And I don't think that there's no buying because of huge debt. I say it's because of the lack of the need to. Something that we're taught not to believe. You see, we always need to buy something according to some genius somewhere. We just have to so as to prove things are fine. If we're buying, then we're growing. That is the only recognized evidence of a smooth economy for econimists. Last quarter
MUST be better than the quarter before or we're in trouble. Well the model is flawed and I say, bull!
I'm a tech for Christ's sake. I love new stuff. But buy it just because? I just can't justify it. I say we're doing pretty good right now. No I am not declaring clear times ahead, just saying there's entirely too much panic afoot.
