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Wall outlet to user responsibility costrs money, and lots of it. IBM answers the phone. Dell, and so many other companies like them, do not.

So, the question becomes, How does IBM raise the money? Regardless of the strategy used, the total must be raised. IBM has tried lots and lots of ways; none seem popular.

I am curious: Where does the TCO argument lie today? For a long while, if true total costs were calculated, Windows did not come in as the low-ball price.



Steve Richter wrote:
On 4/3/06, Booth Martin <booth@xxxxxxxxxxxx> wrote:
Was it ever anything other than a niche product?  Has our platform ever
been anything more than a significant but small part of a very large market?


Booth,

there has never been as large a price premium for the iSeries that
there is today.

Here is an article dated June, 2002 that describes the new rs6000
systems of that time:
http://www.theregister.co.uk/2002/06/25/ibm_floats_regattale_power4s/

"... A base pSeries 630 with a single 1GHz processor, 1GB of main
memory, 18GB of disk and a CD drive costs $14,120. ... a four-way
machine with base memory and disk will cost $30,120. ...A four-way
pSeries 680 with 450MHz Power3-II processors and 1GB of memory and
18GB of disk has a list price of $42,477, and the four-way Model
270-44P tower server with the same hardware inside sells for $50,618.
..."

Those 2002 prices for the pSeries were comparable to the prices for
the iSeries ( and the rest of the industry ).  Now we fast forward to
2006.  The i5 is about 20% cheaper than it was in 2002 but the p5 is a
fraction of its former price. A 1 way 1GHz pSeries 630 was $14k in
2002. Today the p5 505 2 way 1.5 GHz is $4k!

-Steve



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