Wednesday, June 20, 2001

Stock Focus: High-Tech Cost Cutters

NEW YORK - Capital spending, particularly on information technology, may be slowing, but that doesn't mean it will stop.

"We're still seeing companies make investments," says Kathryn Korostoff, president of Sage Research, a Natick, Mass.-based information technology market research firm. "Now it just takes longer to get purchases approved."

Korostoff says companies are looking for technologies that can deliver more "bang for the buck" vis-à-vis their existing technology investments. Important considerations: cost savings and employee productivity.

One example is Cupertino, Calif.-based Packeteer (nasdaq: PKTR - news - people ), whose PacketShaper hardware and software allows businesses to monitor application performance over wide area networks. The PacketShaper system detects and classifies network traffic by several criteria, including application type, application content, user and URL. The company can then make sure that bandwidth-clogging programs, such as music-sharing applications, don't derail important business applications. Packeteer customers include PricewaterhouseCoopers, Sony (nyse: SNE - news - people ) and privately held Domino's Pizza.

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