Waltham, MA (December 9, 2002) – The year 2003 will not only see a powerful rebound in spending for information technology, but will become the baseline for a new era of IT prosperity. According to Kinetic Information LLC, solid and sustained growth will flow from two primary sources: the building of hub-based architectures to increase the efficiency of computing and communications networks (particularly as wireless applications take hold), and the accelerating use of component-based techniques for developing software applications.

In its newly-published Intelligence Brief Trading Mayhem for Mainstream: IT in ’03 to Turn Potential into Performance, the seven-year-old consulting firm says these hot spots will arise from customer concerns about both homeland security and the economy. Together, these concerns already are heightening customer demand for flexibility, scalability, and security in the IT infrastructure, and the need for true enterprise interoperability. However, despite the opportunity they present for technology suppliers, only a minority of vendors will prove to be agile enough to cash in.

“Vendors that don’t invest quickly in hub and component technologies risk continuing their economic pain and perhaps even ending their independent existence,” said Kinetic Information Senior Analyst John Parker. Partly to assure their ability to meet the new need, many major players therefore will go the acquisition route in 2003. “The IBM/Rational announcement last week is but a taste of things to come, as well as an exciting strategic move by both companies,” said Parker.

The specter of international conflict – including war with Iraq – actually may be encouraging organizations to put their IT houses in order, stated Kinetic Information President Steve Weissman. “No one wants to trivialize the war on terrorism,” he said. “But one unintended consequence of vulnerability often is the willingness to take protective measures, and since the same IT solutions can be used to protect the homeland and create stronger global supply chains, the outlook consequently does brighten.”

ABOUT KINETIC INFORMATION
Kinetic Information performs strategic business consulting for buyers and sellers of information technology. Focused on technology’s ability to solve business problems, the firm provides practical analysis and high-value recommendations that its clients use to obtain maximum total value from the systems in their charge. Additional information is available on the Web at www.kineticinfo.com or by calling Steve Weissman at 781.893.4690.