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To: Tony Viola who wrote (49323)	7/28/2001 11:07:15 PM
From: pgerassi	Respond to of 275872

Dear Tony: I notice you did not look at the Himalaya line! The evidence was given to you but, as usual, you forget to look further. The customer does not care what division internally it goes to, he buys a server with 1TB of disk and a 900 lpm line printer. To him, the server costs, on the bottom line, $100K. Not the $15K in the base server enclosure. When the customer points to his server, he points to the raised floor glass enclosed area including all of the cabinets there (actually if there are open reel tape drives, he points to those, not the CPU). Some of those cabinets are printers, some disk, some tape, and some networking. He doesn't call it a $50K server with just the base enclosure where the CPU and memory lies, it is his half a million dollar server. If he bought it from a VAR, it would be his 5 million dollar server and he has the bill to prove it. IDC would call server revenue, the middle example. Not the first or the third. When the customer expands the storage, it goes to server hardware. When they add more network ports, it goes to server hardware. When they add more line printers, it goes to server hardware. As to your silly argument that just because it is listed separately as another line item, well so are memory expansion modules, additional CPUs, additional backplanes, etc. Even a second server base box is another line item. All of the above happens when you generate a server configuration using Compaq's own PC software for that job. The bill of materials lists each part code, or sub assembly code, and a price for each. At the bottom is a total line label of "Total Server Cost". Your argument falls flat on its face. I know I am right. I generate some of them when I specify a server. I get asked for a technical overview of them. I even do a little due diligence, when asked or when I deem it necessary. Try it sometime. It can save you some trouble. Pete