Efforts to reform the U.S. health-care and bank lending systems are likely to lead to an increase in information-technology spending, said one potential beneficiary, Sudhakar Ram, chairman of IT firm Mastek.

Overhauling the country’s IT systems could cost as much as $250 billion to $300 billion over five to seven years, he said in an interview. In addition, he estimated that electronic health records will cost some $150 billion to $200 billion under the Obama administration’s health-care initiatives ($20 billion of stimulus funds have already gone toward the project).

Stronger systems might have mitigated last year’s economic turmoil, Mr. Ram said. “The subprime crisis started with poor controls at the loan origination process, which a halfway decent loan-origination system should have trapped,” he said. “The core systems are several decades old and written in outdated programming languages.”

That’s like blaming superhighways for traffic jams, said Andrew Bartels, an analyst at Forrester Research (FORR) who studies tech-spending trends.

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A new electronic book reader is expected Tuesday from book seller Barnes & Noble Inc. (BKS) that will challenge readers from Amazon.com Inc. (AMZN) and Sony Corp. (SNE) with a color touch-screen and $259 price, according to a planned ad for the device.

The price for the reader, called the Nook, matches that of Amazon’s Kindle. The Kindle controls about 60 percent of the burgeoning e-book market, according to Forrester Research.

Details of the reader appear in a full-page advertisement viewed by The Wall Street Journal in the New York Times Book Review section dated Sunday, Oct. 25. The advertisement says the Nook will enable its owners to “Lend eBooks to friends.”

A spokeswoman for Barnes & Noble declined to comment.

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Asia’s share of the world’s online population will swell to 43 percent in four years, while North America will represent just 13 percent of Internet users, according to a new report by Forrester Research (FORR).

The total world-wide population of active Internet users (defined as those who have been online at least once in the past month) will be about 2.17 billion in 2014, up from 1.46 billion last year, Forrester says.

Faster adoption in Asia will lead to a widening gap in the global distribution of users. The continent will represent 43 percent of the world’s online population by 2013, up from 38 percent in 2008.

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AOL was the top Internet service provider when it came to customer service in 2008, according to a Forrester Research report. The rub: AOL’s top rating based on Forrester’s “customer experience index” translates into a “just OK” mark.

As a group, ISPs grade out with a “poor” rating of 59 percent based on Forrester’s customer experience index. That tally makes ISPs 10th place out of the 12 industries the research firm examined.

I sought out the Forrester report after AOL trumpeted its customer standing in a press release. I just had to see how AOL, which is trying to wind down its access business, managed to be the best house in a bad ISP neighborhood.

In fact, AOL’s 71 percent rating was the tops, AT&T (T) and MSN were the only other ISPs that had “okay” ratings. Three ISPs–Charter, Comcast (CMCSA) and Road Runner–and “very poor” ratings.

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In a recession, budgets are tightened, jobs are cut, and those who remain are expected to do more with less. Given this type of economic reality, it’s surprising to hear of an industry reporting an increase in spending on anything, much less on something as new as social media. Yet that’s exactly what’s occurring. According to a new Forrester Research survey of 145 global interactive marketers in both B2B and B2C companies with more than 250 employees, the use of social media as a marketing tool is on the rise. What’s more, Forrester reports that over 50 percent of marketers said they will be increasing their spending on social media marketing in the coming months.

Part of the reason for this increased spending is the low cost of social media tools. Compared with larger expenditures like advertising, social media requires much less investment. In fact, three-quarters of those surveyed who knew their budgets said they allowed for $100,000 or less for social media tools over a 12-month period.

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Even though Bill Gates has been slowly backing out of Microsoft for the last five years, his actual July 1 departure from the company is a milestone worth reflecting on. What is his single most important legacy? The ability, through monopolistic business practices, to make Microsoft’s products global, de facto standards for business and consumers.

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Over the last five years I have been asked countless times: “Steve, what’s the next hot online community?” It seems as though everybody is on the lookout for the successor to MySpace, Twitter or Facebook. Nobody, even in a difficult economic climate, wants to be viewed as a latecomer.

Perhaps as a defense mechanism to avoid being wrong myself, I now give a boilerplate answer that I believe can last. In short, the next big community is not a single destination. Rather, it is going to be everywhere. To paraphrase Forrester analyst Charlene Li, social networking is becoming “like air.”

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The instant-analysis business is a tricky one. None of us have working crystal balls; any attempt to predict the future, even the five-minutes-from-now future, is risky. For example, on Jan. 31, mere hours before Microsoft made its unsolicited $44 billion-plus offer for Yahoo, Forrester Research, my alma matter, posted a research note with the following headline and deck:
Microsoft Will Make Small Acquisitions
Its Size, Visibility To Antitrust Bodies And Strategy Rule Out Big Deals

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The DataPortability Workgroup announced Tuesday that Google, Plaxo–and the big surprise–Facebook will be participating in discussions on how users can “access their friends and media across all the applications, social-networking sites and widgets that implement the design into their systems.” This couldn’t have come at a more perfect time, especially given the flap over Robert Scoble scraping Facebook.

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