Stories by Rebecca Munro and IDG staff

Hardware vendors get soft on Internet

IBM appears to have done it. Hewlett-Packard and Compaq are desperately trying to get in the game. And Japanese vendors have obviously gone crazy over it. Revolution might be too strong a word but there is definitely a sea change happening in the hardware industry as traditional vendors come to the realisation that the Internet is the way of the future. Lacklustre performances of previously lucrative markets such as semiconductors, the ever reducing margins on bread-and-butter items such as the PC, and the enviable growth rate and capitalisation of dot-com companies has pushed the hardware vendor into the Internet and service space.