rd:
I understand now what u were trying to say with idc and weaving in pc workstations. I'm sure you can appreciate now that it wasn't entirely a clear presentation.
>>The value proposition for SUNW's architecture is not much affected by base capital hardware cost - if it was they would be very vulnerable to high end Intel machines running either Win2K or some Unix variant, since those machines provide equivalent performance at about 25% of the cost, and have for a while. <<
That's curious way of presenting this since w2k and pIII xeon have only recently hit the market. perhaps you believe these 8 way systems running a highly improved msft OS are no more competitive than NT on xeon pII 4 way boxes.
With you it seems the more things change, the more they stay the same. IBM has a new server BOSS, a new box that is #1 in price performance, and a new server marketing stategy, and you say that this is essentially nothing new, and will sell into the intstalled base, not threat to SUNCOM. Funny, but the installed base wasn't really stepping up in Q4 due to Y2k. This busienss UNIT is performing well and they are TARGETING dotcoms, as is everyone now.
Incremetal growth is ALL at the dot.com level. You don't appreciate how aggressively msft/intc;hp; and IBM are attacking this. You don't have a histrocial perspective on the effect of what happens to higher priced incumbents when aggressive. lower ASP competitors enter the market. You DON"T analyize that because it is NOT staring us in the face at the moment and on the front pages of Computerworld. It has to be DEDUCTED from the building evidence.
Finally, thanks for admitting that U are in NO WAY playing suncom for its fundamentals. YOu are, as I suspected BETTING On the mindless momentem continuing; and the STORY holding together for the duration of your BET.
You also admitted that this dOESN"T require any kind of financial analysis on your part, primarily because you already HAVE A DOUBLE. I on the other hand, believe the FINANCIAL model of the businesses is invetwoven with what the companies can an cannot do with prices to repsond to changing compettitive landscape. Also, you don't understand the relationship of P/e ratio and how that is effected by future growth of profits. This does not concern momentum players.
As a TREND follower, and not someone with a grasp on the financial models of each competitor and how that influences product prices, you will be as SURPRISED as the next analyst of the significant competitve challenges just over the horizon. |
