IT bubble coming?

Cnet discusses a Gartner Group report that says all those computers purchased in 1999-2000 are going to be replaced soon, and that the number of new machines going out the doors of manufacturers will actually exceed the number sold to fix Y2K problems.

With demand increasing, we'll see fewer price cuts, and some modest price increases. But it also represents an opportunity for local computer manufacturing operations that imitate the very successful Hornet Technologies model. For a rural community, the Hornet model makes a lot of sense--it's a much better idea than putting hundreds of thousands of dollars in envelopes and mailing that money to Texas and California.

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