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To: pgerassi who wrote (140673)	8/2/2001 12:16:42 AM
From: Tony Viola	Read Replies (2) \| Respond to of 186894

What's the ICOD right to access processor for a million bucks? Might that be a fine print part of CPU cost? So, 64 PA-8600 552MHz Processors for $183,960 and a total system cost of 7 million? No wonder HP can't sell any of those machines. Oh, the disk system SC10, the dual controllers and the 1,260 18 GB drives, all for a cool 3 million plus, won't fit into the server. They're separate cabinets and considered storage, mass storage. Mass storage is not considered part of a server, like line printers and tape drives aren't. Call Carly Fiorina, tell her you have seven million bucks to spend on HP9000 Superdomes, and ask her how many you can get for that amount of money. The ones in the picture, not including all the clients and disk arrays. I'd bet she'd say at least five, each with a reasonable amount of CPUs and memory, not the 2.5 million for 256 GB in that config. Those configs built for the big TPC counts throw in everything but the kitchen sink as server cost. They rarely sell any of those; they're just for bragging rights. More normally, customers buy servers, maybe from one vendor, like HP, and storage, maybe from EMC, and the two kinds of items are absolutely on different purchase orders.

To: pgerassi who wrote (140673)	8/2/2001 9:52:06 AM
From: Mary Cluney	Read Replies (2) \| Respond to of 186894

Dear Pete: The bill that you refer to is a server used by the Transaction Processing Performance Council (TPC) used for transaction processing and database benchmarks. This has nothing to do with our discussion. Our discussion is about the 4 million servers each year shipped from manufacturers and used by IDC to track server sales. DBMS sales belong to Oracle, IBM (DB2), Informix, Sybase and others. SAP, Ariba, ITWO software sales are not included. Mass Storage Devices Shipped in boxes on their own are also not included. Cisco, Lucent, and other hardware sales are not included. Your example is equivalent to the Comparative Museum Council's report on Museum valuations. It includes the cost of museum construction and the acquisition cost of all exhibits. That report would be different than the one the Museum Construction Cost Council provides - that report would only consider the actual construction cost of a museum. <<< <sarcastic on>Yeah, its real hard to justify the 2% figure.<sarcastic off> >>> Your ally, Dan, reported that Intel sold 6 million units of the Xeon chip for an ASP of $1200. That comes out to $7.2B. That one chip alone that goes into servers using your 2% figure would give you a server market of $360B for one chip. The 2 % figure that you relentlessly push is therefore not possible. It does not pass the sanity test. Mary