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Technology Stocks : Intel Corporation (INTC)
INTC 36.91-1.1%Dec 31 3:59 PM EST
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To: Mary Cluney who wrote (139682)7/19/2001 10:25:13 AM
From: pgerassi  Read Replies (3) of 186894
 
Dear Mary:

Have you used the Compaq server configurator software? You notice the price for 1GB of ECC SDRAM? $11,000. Do you think that the memory supplier vendor gets all of that? A substantial fraction? That amount of memory is available from Crucial (Micron) for $503.09 plus shipping (today's price straight from their web site). And you think that the $400 that Dell gets for a CPU all of it goes to Intel? You use list prices to figure Intel revenue from server CPUs. That is fundamentally wrong! Yet you fail to see that! You look to the places that 8 way servers are sold to and ignore all of the things that are sold as part of the sales figure. Do you have the bare minimum required by Windows in your PC? Didn't you add printers, monitors, speakers, larger disk drive, etc. to your PC?

The largest cost for a CAD server installed for my brother's company that he works for was not the server, not the monitor (which cost more than the server box) but the plotter connected to it. Almost as much was the digitizer also connected to it. The CPU chips cost (from Pricewatch which is typically higher than OEMs pay) $240, less than 1% of the $32,572 paid for the hardware. The software used was even more than that (over $45K and I might have missed some). Yet, they figured they recovered the cost in less than 8 months of use.

Oh, because the numbers do not come out the way you want, I MUST be WRONG!

Pete
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