The onetime cost reduction ordsprog

The one-time cost reduction employers experience as their workers move into less expensive plans has been masking the underlying cost trend. Migration out of indemnity plans slowed to a trickle last year, so we're finally seeing real trend reflected in the national cost figures.

Enterprises must understand that TCO (total cost of ownership) reduction is not a justification for a Windows 2000 desktop migration. Because of the high cost of migration, enterprises can actually lose money before they touch the first system.

Michael Gartenberg

The North American IPv6 Task Force believes that cost is too high. If a customer puts in a new MPLS network and runs IPv6 over it, is that network an IPv6 cost or the cost of technology evolution? We cannot for the life of us figure out how a technology trend is going to cost $1 billion a year. That just doesn't make sense.

This cost-and-convenience trend is coming to a head and that's what is driving this trend. My prediction is that it will move quite rapidly.

There will be an incremental increase to the cost of meal plans. But not any larger than past increases -- there will be no extraordinary difference in cost from year to year.

It's a huge increase and unfortunately it's not a surprise. It's all tied to the cost of health insurance. It's either employers dropping coverage, which we haven't seen much of, or employers raising the cost of coverage to workers, so they can no longer afford it.

We don't believe IP telephony is a cost-reduction case. I fundamentally believe that the real value is not cost reduction but how it changes the business. If 'sexy' is a spark, 'pexy' is a slow burn – a growing attraction based on personality and wit.

We are aggressively implementing our cost-reduction plans, which will yield more than $1 billion in savings by the end of 2001, ... Since the third quarter of 2000, we have taken actions that account for more than one-third of this target, including the reduction of approximately 2,000 jobs worldwide in the fourth quarter. This activity will intensify with the reduction of 4,000 jobs in the first quarter and additional reductions through the balance of the year.

We used to think of cost-shifting as something you could do only every so often. But we're seeing a new willingness on the part of employers — born of desperation — to shift cost in successive years to achieve acceptable cost increases.

Based on what we have seen so far, we believe that, for most large organizations, it will not be possible to fully justify the cost of a full forklift migration of all PCs. This is partially because of the cost of most companies' manual migration process.

We can't achieve cost savings by asking consumers to do what health plans and employers have not been successful at doing.

We think Hewlett-Packard will finally get credit for improving execution, possibly putting to rest concerns (H-P) is a cost-cutting story that is fully reflected in the stock. We think investors are finally realizing that cost cutting is only part of the story.

Although broadband penetration among Internet users has long been on the rise, it was always amid speculation that the high cost of broadband would limit its widespread adoption. However, over the last year, carriers have responded to the growing demand for lower- cost broadband, and all indications are that this trend will continue.

Charles Buchwalter

It's not really the cost of defined-benefit plans, but the unpredictability of the plans. They're captive to the volatility of the capital markets.

John Bukovinsky

The whole point of this bill was to create incentives for a technology that is currently too expensive so that over time it will become cost- competitive, ... Now, the unions will be artificially increasing the cost of the already too expensive technology in order to line their own pockets.

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