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How IT Spending Is Changing
Four years after the Internet boom went bust, a unique "echo effect" is set to increase dramatically the revenues of some technology companies, as big purchases of that era roll off the books and corporate spending on IT products rises to meet pent-up demand. Chief information officers are eager to replace outdated hardware and make their systems more resilient and secure. Many are investing in new security and software, though big packaged applications are out of fashion.
The take-away: Technology companies shouldn't interpret this spending spree as a return to the fat times of the 1990s, since much of it is only a temporary benefit of accrual accounting. Instead, they should use this windfall to position themselves better for the long haul.
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