Re: The Dell Effect (Was: Re: Will OpenVMS I64 ...)

From: JF Mezei (jfmezei.spamnot_at_istop.com)
Date: 08/24/03

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    Date: Sat, 23 Aug 2003 18:09:33 -0400
    
    

    Charlie Hammond wrote:
    > The cost of Dell harwware qualified to run OpenVMS may be more or less
    > than the cost of similar HP hardware. Similarly, the cost of maintaining
    > the system (hardware and software) may be more or less.

    Dell doesn't have the dinausaur distribution system called "the channel". HP
    still does. So even of Dell were to have equivalent margins to HP, its
    products would be cheaper because Dell is more efficient.

    In the wintel business, both Dell and HP and assemblers/distributors. Dell is
    JIT, whereas HP is still with the old inventory-channel-retail setup.

    Also, because Dell builds to order, you will often find circumstances where
    the product you need will be much cheaper simply because you can get the one
    high end feature you want without the rest of a collection of high end
    features you'd be forced to get on an HP model where your desired feature is
    only available on high end models loaded with many features.

    Another advantage of the Dell model is that dell can move much faster with
    changes since it doesn't have any inventory to get rid of before the new
    models can be sold or new prices offered.


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