InfoWorld Reports Major Computer Makers Actively Testing Dynamic Pricing Models

SAN MATEO, CA – MAY 14, 2001 – InfoWorld Online and InfoWorld magazine, leading providers of breaking news as well as in-depth analysis of enterprise technology and strategies combined to deliver insight into vital business solutions, reported today that major computer makers, including IBM, Compaq, Dell, and Hewlett-Packard, are actively investigating dynamic pricing models for their online sites. The news, which appears in today's premiere issue of the redesigned magazine and its online counterpart, impacts enterprise computing hardware purchasers with the potential for real-time price fluctuations.

 

"Uncovering this major trend in the computer manufacturing industry exemplifies our commitment to reporting on the technology news that is essential to IT decision makers," said Michael Vizard, editor in chief of InfoWorld, InfoWorld Online and CTO Magazine. "Our readers rely on us to provide the specific information they need to drive their businesses forward, whether it's a breaking news report or an editorial feature on an industry trend. Real-time, dynamic pricing of servers and computer products will have a significant impact on IT purchases — whether that will be positive or negative is yet to be determined."

The dynamic pricing programs researched by the editors of InfoWorld are scheduled to take effect throughout this year. An anonymous source at IBM confirmed that a pilot program that tested the company's dynamic pricing in Europe will be brought to the U.S. as early as June. The dynamic pricing strategies that have been tested at Compaq's factory outlet Web site may be extended to its main Web site as early as this year. Dell is also experimenting with dynamic online pricing for its already flexible build-to-order model. Dynamic pricing in the works at Hewlett-Packard, called "contextual pricing," will depend on a customer's selection of promotional items, and could be put into effect across HP's entire product line by year's end.

While companies deploy dynamic pricing applications as a way to reduce inventories and optimize profits, they cite their intention to pass savings along to the customer. IBM's domestic experiment will use software developed by @themoment, a San Mateo-based provider of sell-side dynamic pricing solutions, to automatically adjust pricing on its server line based on metrics such as customer demand and product life cycle.

Today's relaunch of InfoWorld Online and InfoWorld unveils a new design and deeper content for both the Web site and the weekly magazine, and is part of InfoWorld Media Group's integrated strategy to keep pace with its ever-evolving audience. The dynamic pricing story can be viewed online at www.infoworld.com.

About InfoWorld Media Group

InfoWorld Media Group delivers in-depth analysis of enterprise technology and strategies combined to provide insight into vital business solutions through its integrated online, print, events and research channels. In an era when technology is more critical to business success than ever before, InfoWorld Media Group provides senior IT level expertise for executives such as CTOs and CIOs on how technology drives specific business benefits such as revenue growth, relationship management, and enhancing organizational efficiencies.

InfoWorld Media Group's coverage of key technologies, products and trends that assist IT professionals in leveraging technology for business advantage is substantiated by original research conducted in InfoWorld's $23 million, dedicated multi-platform, enterprise test center. Since 1978, InfoWorld has performed the industry's most trusted testing of technology and products. To learn more about InfoWorld, go to www.infoworld.com.

Headquartered in San Mateo, Calif., InfoWorld Media Group is a wholly owned independent business unit of IDG, the world's leading IT media, research and exposition company. IDG publishes more than 285 computer magazines and newspapers and 500 book titles and offers online users the largest network of technology-specific sites around the world through IDG.net (http://www.idg.net), which comprises more than 200-targeted Web sites in 52 countries. IDG is also a leading producer of 110 computer-related expositions worldwide, and provides IT market analysis through 49 offices in 41 countries worldwide. Company information is available at www.idg.com.