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Business Spending Drives Tech Optimism For New Year: Page 4 of 5

Many companies don't have a choice. Wal-Mart is forcing its suppliers to invest in radio-frequency identification tags to help the retail giant track its inventory.

-- Telecom: Look for more businesses and consumers to connect their telephones to an Internet-based service using the technology known as voice over Internet Protocol, or VoIP. Earlier this month, three major communications companies--Time Warner Inc.'s cable TV unit, Qwest Communications International Inc. and AT&T Corp.--announced plans to sell Internet phone services to consumers.

"It's not a tidal wave, but people are saying, 'OK, we've hit the reliability level,'" with VoIP connections and quality, said Zadrozny, of Siemens.

The experts also pointed to some areas where growth might not be forthcoming despite expectations.

One is Linux and other open-source software. Forrester found relatively few companies considering such technologies crucial or a priority next year.