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In Sizing Up 2006, Analysts See Push Toward Net Services; Confronting Tech Disruptions; Companies expected to depend more on outside innovation in coming year.(INTERNET & TECHNOLOGY)

Investor's Business Daily

| December 02, 2005 | COPYRIGHT 2005 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: BRIAN DEAGON

Look for 2006 to be a year of dynamic change in technology, fueled mainly by broadband communications and Internet advancements.

That's according to International Data Corp., which presented its annual list of predictions Thursday.

The research firm sees big opportunities for tech firms next year. New advances will also bring big risks. Companies will have to adapt quickly if they don't want to lose ground, IDC says.

"The major new ingredient for 2006 is the acceleration we will see toward disruptive new business models," said Frank Gens, IDC research vice president. "These disruptive shifts will force most tech vendors to perform a gut check as they enter the year."

Tech spending will rise just 5.5% worldwide in 2006 -- a tad slower than this year. But certain areas could see fast growth.

The changes sweeping the tech industry are perhaps more subtle than previous upheavals. No one has created a well-known new technology like the Intel Pentium or Microsoft Windows. It's more that smaller ideas have coalesced into a solid foundation for the future.

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