H. Wai:
> Can you explain why Federal Express is very likely to choose Sun
> rather than the other 4 vendors.
It is very simple: the other 4 vendors dont make the servers! When a company buys NCs, they also need to buy the servers to support those NCs. Keep in mind Sun makes it huge profit from the servers, not from the Java or for that matter the NCs. It is the servers that has the highest profit margins. Similar to how Sun has used Java to push for a server centric computing model without making real money out of the Java technology itself at this time yet, it will also be using NCs as a way to sell its servers! In other words, it will undercut the compettition's NC pricing if the buyer also buys its servers, or vise versa.
Sun is in the best position to gain greatly not only from the NC side, but also from the server side. A package may include a break in the price of its servers and a complete maintenance/consulting support if the buyer buys the NCs needed from Sun, or Sun may provide a break in the NC price and the support if the buyer buys the servers from it. It is a simple matter of lets make a deal! The compettition may sell the NCs cheaper than Sun, but if the buyer feels it will get a total package (NCs, servers, complete support, etc.) from Sun at a much lower cost than if it bought NCs from someone else and the servers from Sun (or someone else), it will end up making the deal with Sun rather than the competition that sells only the NCs!
Regards,
Addi Jamshidi |
