Thankfully talk of the "new economy" versus "the old economy" has finally been laid to rest, according to research firm International Data Corp (IDC), which held its annual Directions Conference held in Sydney this week.
Joel Martin, research manager at IDC Australia, subscribed to the theory many pragmatic pundits have espoused since the beginning of the Internet generation, that there is simply a single economy. Technological change to business is not the bottom line, according to Martin, it merely comprises the tool used to affect the bottom line.
With a theme of "history repeats" Martin predicts "service revenues" would exceed hardware and software revenues by 2003, reaching a value of $12 billion in Australia. Similarly, while Australia is moving towards more of a service industry, the country still relies on a strong manufacturing economy, which will require these services.
A wireless strategy will be a competitive necessity in the future IT industry and channel partners will be the key to reaching the diversity of solutions required by users, IDC analysts claimed at the conference.
IDC analysts at the briefing all seemed to concede 2001 would continue be a difficult year, but while the PC market will continue to cop a beating for a little while yet, it is not all doom and gloom. 2002 looks set to be a vast improvement, as enterprise moves back into the replacement cycle and new technologies drive the market.