The bigs of the computing world are scrambling to retool their strategies 
and products for the day when the Web is so pervasive and so reliable that it's 
like a spigot, pouring out technology whenever needed. The prospect is hatching 
a slew of upstarts, too--all angling to upset the graybeards. Here's a look at 
the technology world in transition:

MAJOR PLAYERS              IMPACT

COMPUTERS
SUN, COMPAQ, HP, IBM,      In the past, PC makers cranked up volume to
DELL, EMC, APPLE,          offset falling prices. As computing migrates from
GATEWAY                    millions of desktops to thousands of companies
                           dishing out the Net, the winners will be those that
                           make Web sites as reliable as the phone network.
                           Another opportunity: Creating Web devices.

SOFTWARE
MICROSOFT, ORACLE,         Forget desktop applications--they're so last cen-
SIEBEL, SAP, COMMERCE      tury. Now, the hot ticket is software that creates
ONE, I2 TECHNOLOGIES,      services over the Net. Much of the software itself
ARIBA                      will be delivered online by ''application service
                           providers'' such as USinternetworking and Corio.
                           Instead of hefty upfront licensing fees, these
                           ''apps-on-tap'' will be paid for on a monthly
                           per-use basis.

TELECOMMUNICATIONS
WORLDCOM, AT&T, BELL       Telecom companies are spending billions on
ATLANTIC, SBC, QWEST,      broadband networks to make the Web as reliable
LEVEL 3, METROMEDIA        as dial tone. With long-distance service fast
FIBER NETWORK, YIPES,      becoming a commodity, the winners will be those
COVAD, RHYTHMS,            that can charge for services that flow through
ZHONE TECHNOLOGIES         their pipes, whether it's hosting e-business
                           applications or Net gaming.

CONSULTANTS
IBM, ANDERSEN              These companies' bread and butter has been
CONSULTING, KPMG,          deploying armies of consultants to design com-
PRICEWATERHOUSE,           plex new information technology systems for
SAPIENT, VIANT, SCIENT     corporations. As customers rely on hosting com-
                           panies and application-service providers to
                           deliver applications, demand could dwindle.

OUTSOURCERS
EDS, IBM, COMDISCO,        Companies such as EDS were built on managing
EXODUS, ABOVENET,          corporations' computing systems. Now, tasks
DIGEX, FUTURELINK,         like monitoring a PC network can be handled
INTIRA, STORAGE            over the Net. And a new breed of ''netsourcing''
NETWORKS, EQUINIX          companies will take on tech tasks or a com-
                           pany's IT operations in toto.


MAJOR PLAYERS              WHO WINS

COMPUTERS
SUN, COMPAQ, HP, IBM,      SUN, EMC, IBM, and HP are well-positioned, thanks
DELL, EMC, APPLE,          to their proven high-end technologies. Dell
GATEWAY                    and Compaq are developing cheaper PC servers that
                           can keep complex e-businesses running around the
                           clock. To prosper, makers of PCs such as Gateway
                           and Apple must diversify into Net services.

SOFTWARE
MICROSOFT, ORACLE,         ORACLE should clean up on its database technology,
SIEBEL, SAP, COMMERCE      which is key to managing Web data. And hundreds
ONE, I2 TECHNOLOGIES,      of new rivals are creating software just for the
ARIBA                      Net, such as AGILLION for sales and marketing and
                           PORTERA for professional services automation. That
                           spells trouble for old-guard corporate software
                           makers SAP and PeopleSoft. Microsoft must succeed
                           with its plan for Windows-based services.

TELECOMMUNICATIONS
WORLDCOM, AT&T, BELL       The phone companies are the natural distributors of
ATLANTIC, SBC, QWEST,      all this e-stuff, since they're trusted to provide
LEVEL 3, METROMEDIA        reliable service. WORLDCOM is sitting pretty, with
FIBER NETWORK, YIPES,      the largest Net backbone in the world, and AT&T is
COVAD, RHYTHMS,            aggressively moving into providing new Net ser-
ZHONE TECHNOLOGIES         vices. But Baby Bells must learn to sell complex
                           applications rather than just more phone lines.

CONSULTANTS
IBM, ANDERSEN              Rather than seeking more billable hours, estab-
CONSULTING, KPMG,          lished-players must deliver more bang for the buck.
PRICEWATERHOUSE,           One example: ANDERSEN CONSULTING's e-procurement
SAPIENT, VIANT, SCIENT     spin-off will use its own purchasing power to do
                           deals on behalf of its clients. Look for Web-savvy
                           newcomers--SAPIENT, SCIENT, and VIANT--to profit.

OUTSOURCERS
EDS, IBM, COMDISCO,        Web-hosting pioneers like EXODUS have a jump on
EXODUS, ABOVENET,          the field, but as more technology moves online,
DIGEX, FUTURELINK,         look for a battle royale. Companies such as EDS
INTIRA, STORAGE            and IBM have high cost structures that put them
NETWORKS, EQUINIX          at a disadvantage. The winners will offer customers
                           guaranteed super-reliable service.