Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Path: utzoo!utgpu!water!watmath!clyde!bellcore!faline!gtchen
From: gtchen@faline.UUCP
Newsgroups: comp.sys.ibm.pc
Subject: Software vs Hardware R&D
Message-ID: <1329@faline.bellcore.com>
Date: Tue, 1-Sep-87 09:39:16 EDT
Article-I.D.: faline.1329
Posted: Tue Sep  1 09:39:16 1987
Date-Received: Thu, 3-Sep-87 04:22:10 EDT
Reply-To: gtchen@faline.UUCP (George T. Chen)
Organization: Bellcore MRE
Lines: 20

In article <> dbercel@sun.UUCP (Danielle Bercel, MIS Systems Programming) writes:
>Indeed, I recall reading an IBM report that said for every penny ($0.01)
>they spend on hardware R & D they had to spend 100M ($100,000,000.00) in
>software R & D.
>
>danielle


If we assume that IBM has a net asset on the order of 100 billion, then
they could have spent, at most, about 10 dollars on hardware research
and development.  That's about the price of a 10-pack of disks when
bought in large quantities.  But wait, they can't bye the disks in
large quantities can they?  Perhaps diskettes are considered part
of software.

-- 
+-----------------------------------------------------------------------------+
|What's a .signature? Life is an equation whose only solutions are irrational |
|gtchen@thumper.bellcore.com ! gtchen@romeo.caltech.edu ! gtchen@where.am.i?. |
+-----------------------------------------------------------------------------+