PURCHASING NOTES

By Staff -- Purchasing, 8/24/2000

IT spending will continue to take a bigger chunk of a company's annual revenue,

IT spending will continue to take a bigger chunk of a company's annual revenue, reports the GartnerGroup at its Software Asset Management conference held recently in New Orleans. E-business will cause total North American IT spending as a percentage of revenue to exceed 10% by 2005, with 67% of large enterprises redeploying funds previously devoted to ERP and Y2K activities to e-business initiatives. E-business initiatives will consume 30% to 50% of enterprise IT spending. Spurred on by e-business, more of the corporate capital budget will likewise be devoted to IT.

Looks like some of that IT spending will be used to help support mobile workers:

Looks like some of that IT spending will be used to help support mobile workers: New research from Cahners In-Stat Group shows large firms in the U.S. support nearly one million remote office locations around the globe in addition to about five million telecommuters, an average of 96 locations and more than 450 telecommuters per firm. By 2004, these figures are expected to increase to 153 locations and 660 telecommuters. "The nature of enterprise investments in IT will change as firms are expected to reinforce, if not extend, their central computing resources," says Kneko Burney, director of ebusiness infrastructure & services.

Analysts look to corporate buyers to help perk up PC sales in the U.S. later this year.

Analysts look to corporate buyers to help perk up PC sales in the U.S. later this year. "We believe the combination of small form factor PCs and Windows 2000 will be very appealing to many corporate buyers since it provides a more stable platform with a lower total cost of ownership," says Charles Smulders, principal analyst for Dataquest's PC Worldwide program. "The uplift from Windows 2000, together with small form factor PCs, is expected to begin in the fourth quarter of this year." Although HP and Dell experienced the strongest growth in the second quarter, Compaq remained the top supplier worldwide.

Rolls-Royce has agreed to extend its technology, services and consulting relationship with EDS.

Rolls-Royce has agreed to extend its technology, services and consulting relationship with EDS. The global aerospace, defense, marine and energy group has awarded EDS a $2.1 billion contract to provide global IT services, including e-business, consulting and supply chain management. "Value and service will be key in providing the technology and consulting expertise

in e-business and supply chain management which Rolls-Royce will need in the next decade," says Chris Hole, director of procurement, Rolls-Royce plc. "EDS has become our strategic partner in building a truly global, integrated company."