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Dell in the Enterprise - Need Advice
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Rocke_T_Sinetist
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PostPosted: Sun Sep 04, 2005 7:46 pm    Post subject: Reply with quote

No substantive disagreement Badger. Servers cost way less than $4300 to manufacture, but they cost the same to design as a line of desktops and that cost is distributed among astronomically-fewer 'boxes'.

"Money" is in 'how many of something can you sell'. Again, without the numbers in front of me to quote, the biggest chunk of Dell's revenue comes from bulk sales, not specialty sales. It's not speculation, it's been press-released and published in mainstream media.

Yes, Sun still strongly competes in the server market. But their stock, by which corporations are ultimately judged, is worth MUCH LESS proportionally to where it stood at the onset of the "new world order" than Dell's is.
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Badger
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PostPosted: Sun Sep 04, 2005 8:13 pm    Post subject: Reply with quote

Sun's stock might be worth less in the whole, but they have a larger chunk of the server market than Dell. Dell sees where that money is. They already have the consumer market owned, and they've pretty much got the goverment market consumed, so their only target left is servers. That's where all the time and effort goes. I'm sure that you found that in R&D. You'll spend twice as much time making a server fault taulerant and hot swappable than you would making a desktop more reliable through heat disappation (or laptops, ala every x100 line that overheats) or ensuring that parts can be easily changed.
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Rocke_T_Sinetist
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PostPosted: Sun Sep 04, 2005 9:57 pm    Post subject: Reply with quote

Yep, you nailed it Badger, servers is where the 'growth' is, and Dell is definitely into growth.

Yep, Sun still has a big chunk of the server market. Shouldn't they? They practically invented it.

A little skewed in the engineering is all. Thermal solution is even more an issue in servers, where the market has demanded 1U architecture. If servers had to operate in the same range of ambient temperatures as personal systems, most wouldn't. You're right, there's more interconnect in a server. The basics of interconnect are decades old though, it's almost all catalog-shopping. Dell doesn't 'invent' interconnect hardware, they just acquire and resell it. Thermal solutions fitting your form factor for 'whatever Intel throws at you' is a little edgier. It's harder to do it right the first time. And no matter what purchased solution you're looking at, the salesman always says "this will fix it".
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