Over the next 12-24 months IT vendors stand to benefit from improved corporate earnings. Short term rates are stable, oil prices have stabilized and could drift lower, probability of any immediate conflict with Iran and North Korea seems to have diminished and other factors such as risk of terrorism, on-going war in Iraq, earnings expectations and U.S. mid-term election results have been largely factored into corporate operating assumptions. The upcoming release of Microsoft Vista will drive a new cycle of IT upgrades and we see it occuring regardless of the rate of adoption for Vista itself and even without any major new killer app. Many corporations will likely want to use their improved earnings now to drive IT upgrade and revitalization initiatives which have been dormant for the past 5-6 years. There is a whole new class of Web 2.0 applications which help consumers and soon corporations to improve their productivity. The benefits of this potential spending windfall will not fall evenly amongst all IT vendors. We expect the bulk of the capital to go to larger IT vendors like HP, Oracle, Intel and Cisco and a smaller but still meaningful amount to vendors that sell on-demand solutions and infrastructure directly to the business buyer, - e.g. Salesforce.com, Webex and Akamai. We expect this upgrade cycle to be considerably shorter than the prior cycles of IT spending expansion which occured in the mid and late 90s, but still lasting for at least 12 to 18 months. Pricing power may also be back for many IT vendors, especially in market spaces that have undergone consolidation.