I have read that due to the sluggish economy quite a few buisnesses are planning to/have been delaying the 3-year upgrade cycle until their profits become more reliable. Though I have no experience in that area, I would imagine that upgrades can only be delayed so long before you reach the point where you can't tinker around with the old equipment anymore. The reason that I bring this up is because I have seen posts on several boards about "why switch?" and "bang for buck" comparisons. I'm sure someone here must work around these expensive pieces of equipment and I was wondering, based off of your experience at whereever you are, is this assesment true? Is it at them point where companies will now have to buy a new server and have a choice whereas if the economy had been better everyone would have picked up a new batch of intels a while back and AMD would be out in the cold?
I'm in the high end SOHO market and many of the companies I've been dealing with have adopted the policy that unless there is some grand leap in technology or they find their machines no longer allow them to compete in a timely manner they're going to wait a while before replacing entire systems.
As one person put it... So long as it still does what I need, I can afford to wait.
Mind you... my in-case upgrade business is still going strong with many customers buying larger or additional storage devices and maxing out their motherboards with faster processors.
I don't know what sorces you have read... there are a lot of publications that my industry, the finacial industy, as a whole call "Finacial Pornography." They aren't worth the paper they are written on.
Let me refer to the Federal Reserve itself to let you in on some of the developments in this economy. First there never was a textbook recession. We had only one quarter of negative growth and that was back in 2001. Our economy has had positive numbers all of the other quarters. Now they have been small icreases but they are increases non-the-less.
Back to the FED. Read this publication entitled <A HREF="http://www.federalreserve.gov/releases/g17/current/g17...." target="_new">INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION</A> dated 04/15/2003. One the first page you will see that the US economy as an industrial machine has 10.1% higher output than we did in 1997. 1997 is three years before the peak of the stock markets in 2001. However based on the production figures, January 2001 had the lowest production figures for the year. It took the markets 3 quarters to figure it out when Greenspan came out to say that the growth of the economy was 0%.
If you look at page 6 of that statistical report, you will see that "high-technology industries" have expanded our economy to a faster growth rate. (Total IP verse Total IP without HTI's)
At the bottom of that page, page 6, you can see groth in output for computers and semiconductors. Those are impressive numbers. Production for computers is almost 300% higher than in 1997 and semiconductors are almost at 600% above 1997.
So looking at what the Federal Reserve has stated. I think the industry is poised to rather well moving forward.
Are we out of the slowdown... I am not a Ms. Cleo nor do I have a crystal ball. But when this thing gets moving we are in for a good ride. GDP figures come out on Friday so we will see how we are doing then.