Business & Money Trail:

GARTNER SAYS COMPANIES OVERSPENT $1 BILLION

Gartner Inc has released a report indicating that companies have overspent about $1 billion on application server technology solutions since 1998. Moreover, an additional $2 billion may be wasted between now and 2003.

Gartner makes the following recommendations for companies when they purchase and implement application server technology:

• Application server is a function, not a product. Check your technology inventory to see if you already have the capability in an existing product or a free product.
• Application server is not the same as Java 2 Enterprise Edition (J2EE). For example, the Microsoft Product line lacks J2EE and Java, but has application server functionality.
• As components of application server technology, J2EE and Enterprise JavaBeans (EJB) are not the same thing. Most Java projects use Java Server Pages (JSP)/servlet capabilities and not EJB. Higher-priced application servers are designed to run EJB, yet they are using JSP/servlet capabilities instead.
• Don't let confusion or hype push you to spend more than necessary.

Gartner estimates that, by 2003, at least 70 percent of new applications will be deployed using high-end application servers and 60 percent of all new J2EE application code will remain JSP/servlet-only.

"The application server vendors are encouraging customers to purchase higher-end technology that they just don't need," said Gartner vice president and research director David Smith. "It's like buying gourmet food to feed kids at summer camp. It's just not necessary."

About Gartner Inc

Gartner Inc is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. Gartner's divisions are Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner Inc is headquartered in Stamford, Connecticut and consists of 4,600 associates, including 1,400 research analysts and consultants, in more than 80 locations worldwide. The company achieved fiscal 2000 revenues of $855 million. For more information, visit www.gartner.com.

Contact Gartner, Danielle Westling, 203-316-6754, danielle.westling@gartner.com.