Re: The Alpha Server and 31 add on CPU with related 32 MEM Module and MEM DIM UP comes out to about $2,347,800.00.
When Compaq ends the Alpha manufacturing and replace this with the Itanium, does this mean that a lot of this revenue goes to Intel?
32 CPUs might go for as much as $128K - though Compaq would probably get a better price than $4,000 each. Intel doesn't make memory so their revenues are limited to CPU, chipset (if it isn't from serverworks), motherboard (unless compaq makes their own - which they have in the past) and not much else. So, under your assumption that the "server market" numbers we've seen exclude everything but the hardware (and I'd still argue the point vigorously) Intel gets 3% to 5% of the revenue. Even 5% of $15 Billion ($60 Billion Annual) quarterly high end server sales is only $750 million. If Intel and IBM (S/360, AS400, RS6000) each get 40% of that and SUN gets 20%, it yields $300 million gross revenue for Intel. Double that number and it still isn't going to be a big deal for Intel.
Now subtract out Intel's costs of keeping all those OEMs happy and producing the chips, compilers, etc and calculate what those sales are going to add to the bottom line.
There is a reason that Intel bought the remnants for DEC from Compaq rather than DEC buying the remnants of Intel - it wasn't just horrible mis-managment on the part of DEC. Hardware in that segment is dying as a source of profits. |
