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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 203.14-0.8%Jan 9 9:30 AM EST

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To: fyodor_ who wrote (72030)2/20/2002 2:08:16 PM
From: Joe NYCRead Replies (1) of 275872
 
Fyo,

Couple of points:
- You don't have to buy the OS or Office every year
- Governments and large corporation don't keep buying keep buying new copies every year, they buy upgrades
- They don't pay retail

You can figure either paying an upgrade or OEM price (if the machines come with the OS installed) of $75 to $125 every 2 to 4 years, Office of some $150 to $250 every 2 to 4 years.

I don't know about government in Denmark, but many corporations routinely skip versions.

Any way, on the lowest extreme of my range, you pay $225 every 4 years, or little over $50 per year, on the other extreme, you pay $375 over 2 years, or almost $200 per year. With the discount a buyer of 55,000 copies, $100 is the right ballpark.

Of course, this number is dwarfed by the support costs, which can be 10x the price of OS + productivity app. Custom apps can again add 5x to 10x the price of OS + Office.

Joe
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