custom cluster cabinets (was Re: 1U P4 Systems)

[Josip Loncaric]

Bari Ari wrote:
> 
> We don't envision very dense clusters being priced above the cost of off
> the shelf built clusters. The cost of building one enclosure is less
> than eight enclosures.

The cost of building an item is NOT the price charged for the item.  The
manufacturer's development cost must also be recovered.  Dense packaging
adds value not found in the mass market, so hardware vendors can price
them higher even if the unit production cost is actually lower.  Some of
the difference goes to their profit, but a lion's share covers their
development costs.

I remain skeptical about your pricing projections.  Until the mass
market for PCs drastically changes, I doubt that we'll see high
performance dense packages selling for the same price as equally capable
commodity alternatives.

Sincerely,
Josip

-- 
Dr. Josip Loncaric, Research Fellow               mailto:josip at icase.edu
ICASE, Mail Stop 132C           PGP key at http://www.icase.edu./~josip/
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