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sgolds

12/14/03 12:01 PM

#20502 RE: Andy Grave #20487

Andy Grave, I think you overestimate the effect of discounts on the server market. Discounts really don't move servers much, if any. Servers are first sold on reliability. The next issue in importance is application compatibility. After that, reliability again. Then management features and general supportability questions. Did I mention reliability? You can put that here also. Next comes total cost of ownership over the projected lifespan (hardware, software, salaries). Did I forget about reliability? Let's throw that in here.

Last comes the price of the box.

For these reasons, I don't think that Intel or HP will want to discount the final sale much (just a little to close a sale, as usual). Discounting the systems much just reduces your revenue and doesn't really affect sales.

Did I mention that reliability is more important than price?

(I hope this silly message does bring home the need to think about server sales differently from desktop sales. It is much, much different. I am very impressed with the way AMD has introduced the Opteron server line - it is much like reeling in a fighting fish, it takes patience and a lot of playing with the line. AMD's careful introduction and methodical ramp has been about as perfect as launching a new server architecture can be - especially including protecting the price of the processor.)

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kpf

12/14/03 12:19 PM

#20506 RE: Andy Grave #20487

Andy,

Hmm. Certainly. Just curious, are u in the mood for a wild guess or two?
How much (%) discount do you guess Scooter negociated for Opteron-prices?
And how much % u guess he has been offered from Intel for Xeons if SUN wont offer AMD-64-Servers?

K.