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Corporate customers, Mr. Capellas said, increasingly want to "purchase information technology as a utility" and he added that only a few companies will have the ability to be such full-service digital utilities.
The deal, to be announced today, is part of I.B.M.'s strategy to persuade customers to purchase information technology like software and data storage as utility-like services over the Internet.
A recent study [1] found that if the current cost of power consumption continues to increase it may reach to a point where it will cost more money to power than to purchase information technology equipment such as servers.
This proposal would provide nearly $1 billion of funding over 10 years for hospitals and skilled nursing facilities to purchase information technology to improve medication safety.
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PROCTER & GAMBLE CO., Cincinnati, said it hoped to decide by the end of the year on a partner to handle purchasing, information technology and other business services in a cost-cutting measure that would be one of the biggest contracts of its type.
A telephone survey was conducted with office representatives of 407 physician practices in Oregon who had purchased information technology.
The French comput-er services company Atos Origin agreed to purchase the information technology unit of Schlumberger for about 1.3 billion euros ($1.5 billion) in cash and stock.
The recommendations assume that doctors and other providers will take major strides to computerize medical records, perhaps with tax credits and other federal incentives for the purchase of information technology.
Easing the burden of excessive paperwork and lengthy bureaucratic approvals associated with the purchase of information technology and data management software can strengthen innovation in local governments interested in improving their transparency.
Corporate customers, they said, are focused on simplifying their purchases of information technology and the projects that are going ahead are to reduce costs and increase operating efficiency.
According to a survey in May by CIO Magazine, corporate technology executives said on average that they expected their purchases of information technology to increase by just 3.3percentt over the next 12 months.
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