Clearly they were bullish and they were really pointed to (the fact) that IBM is getting a benefit from the Internet.

I'm looking for a new challenge. There comes a point when, as a consultant who suggests to other people what they should do, you want to do it yourself.

suggest that UNIX server growth across the industry is accelerating due to a solid Internet build-out. Sun is becoming the new IBM.

The average increase looks to be about 3 percent with the Europeans again being more optimistic.

Although (IBM) CEO Gerstner said in May he has no concerns about services, we do. EDS, SCS, and Perot have each suffered recently. Contract signings appear solid, but the time between outsourcing order and implementation may be increasing in the mature U.S.

Although there are puts and takes along with substantial integration risks, we think our support of the deal will be rewarded. Cost savings and a more powerful vendor should result in a trade to at least the mid-$20s; our sum-of-the-parts analysis comes up with $28 per share.

This contrasts with some surveys that find flat to down spending in 2002. We wouldn't split hairs; our conclusion is that users see a modest pickup.

This is the best tech durable goods report we have seen in a while. The book-to-bill increased to 1.07, the best figure since September, while the inventory-to-shipment ratio was flat at 1.14.

Tepid company guidance makes us cautious in extrapolating.

Tech valuations have fallen by about one-third since early-September. Although technology stocks are not at bargain basement prices, semis, communication equipment, and hardware are trading at the lower end of their five-year ranges. These sectors are also looking attractive relative to the S&P 500. Wireless, storage, and software remain expensive.