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Technology Stocks : Intel Corporation (INTC)
INTC 45.51+10.7%Jan 9 9:30 AM EST

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To: Mary Cluney who wrote (138993)7/10/2001 6:00:35 PM
From: pgerassi  Read Replies (1) of 186894
 
Dear Mary:

The main server box does contain 1 CPU module. The module is comprised of a PCB, (1 probably or more chip) CPU, high speed SRAM L3 cache (8 MB), control logic, a big HSF, and installation and maintenance costs. I estimate that the CPU chip itself is much less than $16K. Markups in this area are 100 to 300% typically, so CPU chip module is more likely to be $4K, if not less. So, out of a $6M+ server, CPU chips cost less than $128K or about 2%. If Intel only supplies the CPU chip, it will be even less than that.

You can look at it another way, the box (3 cabinets), main FSBs, MB, PCBs, chipsets, PS, etc., plus 1 CPU module cost $466,200. One note, it appears that RDBMS providers are going to a tiered platform power based pricing scheme. This may exacerbate the trend to smaller CPU power boxes with larger memories and storage than typical now.

Pete
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