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why do people think there is no profit in p5 sized and marketed systems?

let's review the profits of some of our competitors:

HP $1.7 billion the last quarter:
http://www.hp.com/hpinfo/investor/financials/quarters/2006/q2.html

Dell earned $762 million the last quarter:
http://money.cnn.com/services/tickerheadlines/for5/200605190858DOWJONESDJONLINE000583_FORTUNE5.htm

-Steve


-----Original Message-----
From: Trevor Perry [mailto:tperry@xxxxxxxxxxxxxxxxxxxxx]
Sent: Thursday, June 01, 2006 10:56 AM
To: Midrange Systems Technical Discussion
Subject: Re: Prometheus


Larry,

I just realized. Steve does not understand "profit". Since it is going to be 
hard to teach him the equation of Sales-Costs=Profit, then we are going to 
be unable to convince him that the System p is copied from the System i so 
they can reduce the costs of p and one day make a profit.

Long live System i.
Trevor


----- Original Message ----- 
From: "Larry Bolhuis"
Subject: Re: Prometheus



I will cut to the conclusion and say the answer is to have i5/os as a
supported OS on the p5 and do away with i5 hardware models, i5 only
business partners, a lot of i5 marketing. <snip>
To steal a line from Red October "You arrogant ass, you've killed US!"
That is, kill all your i5 partners and you've killed the System i. Many
of us (yes I am one of them) don't do p for a reason: we believe in i.

Better instead to put more arrows in our quiver. With the hardware
essentially identical already why not let us sell more models?

There are not many published numbers to know for sure, but I dont
agree the p5 is a low profit item for IBM.  The $4000 for the lowest
price p5 is still $4000. AIX, Linux and software subscription are in
the $1000 range. DB2 brings in a good profit at $724 for the first
user, $124 for additional users or $4874 per processor. Double those
charges for DB2 on the enterprise ( bigger than 2 cores ) models.

Software monies go other places within IBM. $4000 for a small p cannot
possibly make them significant margins and likely is a loss.

 - Larry


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