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Date: Sat, 22 Feb 2003 08:33:18 -0800
From: Larry McVoy <lm@bitmover.com>
To: "Martin J. Bligh" <mbligh@aracnet.com>
Cc: Larry McVoy <lm@bitmover.com>, "David S. Miller" <davem@redhat.com>,
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Subject: Re: Minutes from Feb 21 LSE Call
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On Sat, Feb 22, 2003 at 08:29:34AM -0800, Martin J. Bligh wrote:
> > people sell lots of server.  I spent a few minutes in google: world wide
> > server sales are $40B at the moment.  The overwhelming majority of that
> > revenue is small servers.  Let's say that Dell has 20% of that market,
> > that's $2B/quarter.  Now let's chop off the 1-2 CPU systems.  I'll bet
> > you long long odds that that is 90% of their revenue in the server space.
> > Supposing that's right, that's $200M/quarter in big iron sales.  Out of
> > $8000M/quarter.  
> > 
> > I'd love to see data which is different than this but you'll have a tough
> > time finding it.  More and more companies are looking at the cost of 
> > big iron and deciding it doesn't make sense to spend $20K/CPU when they
> > could be spending $1K/CPU.  Look at Google, try selling them some big
> > iron.  Look at Wall Street - abandoning big iron as fast as they can.
> 
> But we're talking about linux ... and we're talking about profit, not
> revenue. I'd guess that 99% of their desktop sales are for Windows. 
> And I'd guess they make 100 times as much profit on a big server as they 
> do on a desktop PC. 

You are thinking in today's terms.  Find the asymptote and project out.
-- 
---
Larry McVoy            	 lm at bitmover.com           http://www.bitmover.com/lm 
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