Replacing products with services

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Forget for a moment the hardware requirements of that new economy -- for instance, the production of a six-inch silicon wafer may require nearly 3,000 gallons of water. But do keep in mind that a hospital or an insurance company or a basketball team requires a substantial physical base. Even the highest-tech office is built with steel and cement, pipes and wires. People working in services buy more software, but also more sport utility vehicles.