Technology spending, which soared during the 1990s as the Internet was being built up, fell in 2001 and 2002 and many industry analysts now expect it to be about flat in 2003. Mr. Palmisano said that historically, the technology industry has grown about twice as fast as the U.S.' gross domestic product, and he expects it to return to that rate again once demand improves. fast.
Mr. Palmisano said that IBM has purchased software and services companies in recent years to build the company's vision of "on demand" computing, in which businesses use technology to better manage purchasing and inventory and pay only for computing that they use. The company has also divested many commodity hardware businesses, such as hard disk drives. (Reuters)