SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 207.67+2.2%Jan 12 3:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: combjelly who wrote (260222)5/15/2009 11:49:09 AM
From: WindsockRead Replies (2) of 275872
 
Here is a home work assignment for you.

AMD offers 1 million free processors to HP if they will invest the time, money and engineering resources to build systems and offer them to market. The processors are the new Opteron design that have very little infrastructure in place and have not been thoroughly validated for server use.

Your job is to calculate the cost of developing Opteron systems answering these questions. Also specify the amount of time in months and the number of engineers that it will take to design and validate the Opteron systems.

Opteron systems are new to the market and AMD has not spent the money or resources to ramp the market for Opteron server systems with system purchasers. How many systems will HP be able to sell if it invests tens of millions of $$ in order to ramp the market for AMD?

Calculate the profit on the Opteron systems that HP will sell and determine the return on the HP investment to ramp the market for AMD?

Discuss whether HP should ask AMD to invest its money and resources to ramp the Opteron market and return when the Opteron market will better support an HP investment.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext