Dan, <<<For mainframes.... the chip cost is a tiny fraction of the total system cost.
You guys have to try to get together on your story...>>>
I don't have any problems with that at all. Total System Cost for IBM mainframes includes applications and systems software, maintenance, and support (technical, help desk, et al). Typically this is 8 to 10 times hardware costs. Hardware includes giant storage systems and complex communications gear (routers, switches, etc.) Servers are a small percentage of the total system in terms of costs.
My argument with Pete is that CPU costs relative to servers shipped from manufacturers like CPQ, DELL, HP, others, and as defined by IDC, is far in excess of the 2% and the .2% that he so often intones in some breathless manner. My own estimate is that it is in excess of 25% using manufacturer's listed price (in any case price comparisons have to come from the same price list - not as Pete often does, mix OEM prices for some items, cost of manufacture for other items, and some that comes purely from his imagination).
The arguement that I have with Pete is quite simple - no matter how hard he tries to obfuscate the issue. One of us is right and the other is wrong.
We shall see.
Mary |
