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To: Tenchusatsu who wrote (107631)	8/17/2000 1:33:26 PM
From: Joe NYC	Read Replies (2) \| Respond to of 186894

Tench, if there is a glut of server capacity out there, why are big server guys like Compaq, IBM, and Sun still in business? A business plan based on an illusion of need will fall apart very quickly. I would not be surprised if a lot of server purchases are not based on illusion. Suppose you have a start up and your business plan has a projection that says that 1% or world population (~60 million people) will visit your site every day and you need hardware infrastructure to support it. The companies end up buying a lot of overpriced exotic stuff like Sun servers. Then, later when only 10 people per day show up, this exotic hardware is basically running idle. So there may be a glut, and demand can still be good. I think this trend will continue. There are some estimates that a large percentage of software projects go nowhere (75% or more). A lot of these projects get their own server that ends up sitting somewhere in the corner with nobody accessing it. Joe