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E-mail mwoods@cahners.com
Web
Sites Targeting Small Businesses Gaining Prominence
The market for online business centers (OBCs) is sprouting as these
Web sites implement new marketing strategies. OBCs - sites that
offer targeted content, interactive features, software for rent,
and online marketplaces - will become key channels for reaching
small businesses. OBCs will spend millions over the next six months
to promote themselves and will focus on offering more interactive
features.
 User
Confusion Hampers Wireless Manufacturing
The use of wireless technology in manufacturing is on the upswing,
but
confusion among users is hindering growth. Most users think that
wireless technology can improve accuracy and cut costs in the manufacturing
process, but are uncertain about how to justify investment in the
technology. Wireless vendors should embark on a campaign to educate
users about the benefits of wireless in the factory.
 Large
Firms Will Boost Internet Spending
Enterprises of over 1,000 employees
are investing heavily in Internet infrastructure, though they are
not necessarily selling their wares directly online. Large companies
are seeking to bolster their offline resources and supply chains
via the Web. By 2002, large firms will invest more than $84 billion,
roughly 20 percent of their total technology spending, on Internet
technology.
MP3
Flash Memory Demand Soars Past Expectations
The worldwide market for MP3 players in 1999 will reach 1.3 million
units. The market for MP3 flash memory cards, the recording media
for MP3 players, will reach 5.2 million units by the end of 1999.
Though the United States is manufacturing the most MP3 units, South
Korea is rapidly becoming an MP3 player-manufacturing powerhouse
and is expected to export 300,000 units in 1999.
 Mobility,
Collaborative Apps Drive Mid-Sized Firms' Hardware Spending
Medium-sized companies will increase
their computer hardware spending from $13 billion in 1998 to $17
billion in 2002. The average medium-sized business spends roughly
$166,000 on computer hardware annually. Today medium-sized businesses
are buying hardware to prepare for Y2K, provide laptops for mobile
workers, and enable their technology infrastructure to support collaborative
software.
 Small
Business Boasts Big Tech Market
Computer hardware and software vendors
should not ignore small businesses in the US. These firms are not
large in size, but they do spend money on computing infrastructure
today and will continue to do so in the future. The key is to be
creative about target marketing to this segment so they are informed
and educated buyers.
 Internet
Sparks Small Business Networking Sales
The small business internetworking hardware
market is expected to show substantial growth over the next few
years, growing from over $8 billion to roughly $13 billion by 2002.
The evolution of small business networks from non-existent a couple
years ago to complex distributed computing environments is resulting
is significant demand for network hardware in this market. Opportunities
are present for vendors to capitalize on this trend, particularly
if they are creative about approaching the small business market.
Internet
Drives SOHO Technology Spending
 With
more than 7 million firms in 1998, the Small Office/Home Office
(SOHO) market stands to represent substantial cash flow for technology
vendors over the coming years. Despite their large numbers, Cahners
In-Stat Group does not expect the SOHO market to emerge as significant
buyers of technology as compared to the other commercial market
segments, though this $39 billion opportunity is not to be ignored.
Top
Tier ERP Vendors Think Smaller
 Top
tier Enterprise Resource Planning (ERP) vendors have set their sites
on small enterprises with under 500 employees, but their early efforts
don't seem to have paid off. So they may have to look at their second-tier
competitors to find a way to get into this market, a new research
report from Cahners In-Stat says.
DTV
Broadcasters Taxi To the Runway,
But Set Manufacturers Delay Takeoff
 The
first digital television broadcasts opened a new chapter in broadcast
history last November, a positive sign for TV manufacturers who
are looking for a way to shore up revenues in a market where unit
prices are falling. But despite the optimism of the Consumer Electronics
Manufacturers Association (CEMA), manufacturing history is not quite
ready to be made, according to a research report from Cahners In-Stat
Group.
 Scaling
China's
"Great Silicon Wall"
Tapping
into the vast Chinese electronics market does come with conditions
and definite external risks. The Cahners In-Stat Group report, Scaling
China's "Great Silicon Wall," provides an in-depth analysis
of the risk/ reward equation for chipmakers contemplating entrance
into China. Gaining access to China's semiconductor market does
not come cheap or with any solid assurances, but as this report
demonstrates, chipmakers have thrown caution to the wind and the
rush is on to conquer this uncharted frontier.
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