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Technology Stocks : Data Dimensions

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To: Greg Hansen who wrote (2510)8/1/1997 3:07:00 PM
From: Craig Richards   of 4571
 
Greg,
Your math is a little off on the benefit of Unisys Ardes2K sales/giveaways to DDIM. The basic Ardes2K package goes for $15,000, but this includes internet access until 2000. The Unisys Ardes2K giveaway CD (free with one of Unisys' servers) only includes the CD, but not the internet access. The list price on the CD is $5,000. A single CD includes licenses for 5 seats. I agree with your 40% resellers discount, meaning DDIM gets $3000/giveaway CD, or $600 for each Ardes2K seat Unisys gives away. So if Unisys gives away 10,000 seats of Ardes 2K, total revenue to DDIM will be $6 million. What I'm trying to figure out is why is Unisys giving away Ardes2K with certain of their servers. How does this benefit Unisys? Any ideas out there? Will Unisys really gain over $6 million in server sales by including a free Ardes2K CD with every server sale? If not, why would they donate money to DDIM for every server sale they make? Unisys must be benefitting from this arrangement in some fashion, but I can't figure out how.
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