lkml.org 
[lkml]   [2003]   [Feb]   [22]   [last100]   RSS Feed
Views: [wrap][no wrap]   [headers]  [forward] 
 
Messages in this thread
    /
    Date
    From
    SubjectRe: Minutes from Feb 21 LSE Call
    >> > Let's see, Dell has a $66B market cap, revenues of $8B/quarter and 
    >> > $500M/quarter in profit.
    >>
    >> While I understand these numbers are on the mark, there is a tertiary
    >> issue to realize.
    >>
    >> Dell makes money on many things other than thin-margin PCs. And lo'
    >> and behold one of those things is selling the larger Intel based
    >> servers and support contracts to go along with that.
    >
    > I did some digging trying to find that ratio before I posted last night
    > and couldn't. You obviously think that the servers are a significant
    > part of their business. I'd be surprised at that, but that's cool,
    > what are the numbers? PC's, monitors, disks, laptops, anything with less
    > than 4 cpus is in the little bucket, so how much revenue does Dell generate
    > on the 4 CPU and larger servers?

    It's not a question of revenue, it's one of profit. Very few people buy
    desktops for use with Linux, compared to those that buy them for Windows.
    The profit on each PC is small, thus I still think a substantial proportion
    of the profit made by hardware vendors by Linux is on servers rather than
    desktop PCs. The numbers will be smaller for high end machines, but the
    profit margins are much higher.

    M.
    -
    To unsubscribe from this list: send the line "unsubscribe linux-kernel" in
    the body of a message to majordomo@vger.kernel.org
    More majordomo info at http://vger.kernel.org/majordomo-info.html
    Please read the FAQ at http://www.tux.org/lkml/

    \
     
     \ /
      Last update: 2005-03-22 13:33    [W:6.170 / U:0.024 seconds]
    ©2003-2020 Jasper Spaans|hosted at Digital Ocean and TransIP|Read the blog|Advertise on this site