[email protected] (Mullen, Patrick) writes: > Isn't this a bit like saying that because the price of the chips in a > 1990 Lexus vs those in a 2014 Lexus has dropped by a factor of (say) > 1000, a 2014 Lexus should cost $50? > > Silly analogy I know, but more seriously, what proportion of the > current $33M does go to pay for the chips?
re: http://www.garlic.com/~lynn/2014h.html#11 Demonstrating Moore's law yep, in the intel and moore's law model .... that exactly what is being talked about ... there are periodically examples just exactly like that ... what if other things tracked computer prices that followed Moore's law. also large cloud operators are saying that they get their chips directly and do their own system assembly for 1/3rd the price of brand name server systems (which already have significantly lower markup than mainframes). server chip vendors are saying that they are now shipping more chips directly to the cloud operators ... than to brand name vendors ... combination has put increasing downward pressure on brand name server prices ... which possibly also accounts for why IBM is selling that server business ... something that Cringely also discusses in some detail. it is contrasted to HP ... which is signing agreements to stay in that business. Cringely gets into nearly all of the stated new IBM business growth are markets that require enormous numbers of such servers ... putting IBM at competitive disadvantage if it isn't doing its own (possibly break-even on the hardware but provides competitive advantage on providing services based on the hardware). -- virtualization experience starting Jan1968, online at home since Mar1970 ---------------------------------------------------------------------- For IBM-MAIN subscribe / signoff / archive access instructions, send email to [email protected] with the message: INFO IBM-MAIN
