NEW YORK (MarketWatch) -- Goldman Sachs raised its rating on the software sector to attractive from neutral on the belief that the emergence of Web services architecture will accelerate industry growth and on expectations that share prices will rise as investors position for an anticipated year-end rally. Analyst Rick Sherlund believes a movement to a new generation of Web services base standards, which will result in more flexible and adaptable systems that can allow for changes in business processes, could reinvigorate growth for information technology vendors. He said the Phase I adoption of infrastructure software from IBM , BEA Systems , Oracle and Microsoft to enable the new standards is well underway, and the Phase II re-architecting of existing applications from SAP , Siebel and others is upcoming. He said Phase III will be integrating the new standard into desktop systems, which should stimulate a replacement cycle. Sherlund recommends positioning in the expected leaders of the next generation systems, even if the benefits aren't expected for a few years, given attractive valuation and the anticipation of a typical year-end rally.
Monday, May 23, 2005
Entire Software Sector up on Web Services!
Now this is interesting: