Don't confuse Internet stocks with tech stocks asserted that investors need to differentiate between producers of technology (tech companies) and consumers of technology (such as Internet companies). Producers' revenues will be hit by the deflationary forces impacting technology pricing, while consumers will benefit from those forces through lower expenses.
In light of that, E*Trade's comments today were interesting:
Just one piece of anecdotal evidence, but interesting, no? Doesn't sound good for Sun and Microsoft.
...our goal is to realize cost savings in 2005 of $84 million. Of this
$84 million, about 30 million will come from technology related savings
resulting from the deployment of more cost-effective hardware and
software due to our open source infrastructure...
(Quote from the CCBN StreetEvents transcript; my italics.)
Full disclosure: I own stock in E*Trade.