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Technology Stocks : Intel Corporation (INTC)
INTC 36.85+1.6%Dec 19 3:59 PM EST

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To: Dan3 who wrote (138637)7/5/2001 12:56:45 AM
From: Tony Viola  Read Replies (2) of 186894
 
is typical of what's offered by Dell, HP, IBM, etc. and variation on it (often in rackmount cases or as "blades" probably account for more than 3 of your 4 million servers. The average configured price is less than $5K (including software) and of that $5K less than $250 goes from the OEM to Intel for the processor.

You fail to mention spare and upgrade CPUs, other parts of the server that Intel makes, like NICs, ethernet controller chips, some chipsets and mobos. Intel is the #1 producer of NIC cards now, you know, and most servers probably have 2.

4 large cache Xeons, will run at least $30K to $60K, with $4k of that going from the OEM to Intel.

For most of the life of large cache Xeons, they've cost $2 -$4K, like Itaniums are for price now. The 2M cache Xeon is still over $2K, so your $1K is far too low.

The way you do accounting, beating down amounts Intel gets for some parts, and ignoring other parts, about 1/2 the cost of the server would be not accounted for and go to nobody. You both exaggerate about some things and at the same time, conveniently forget to mention other things.
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