Path: utzoo!attcan!uunet!aplcen!uakari.primate.wisc.edu!uwm.edu!psuvax1!rutgers!cbmvax!grr
From: grr@cbmvax.commodore.com (George Robbins)
Newsgroups: comp.sys.dec
Subject: Re: Digital Review SBC article
Message-ID: <9618@cbmvax.commodore.com>
Date: 7 Feb 90 14:22:31 GMT
References: <26668@cup.portal.com>
Reply-To: grr@cbmvax.cbm.commodore.com (George Robbins)
Organization: Commodore, West Chester, PA
Lines: 40

In article <26668@cup.portal.com> cliffhanger@cup.portal.com (Cliff C Heyer) writes:
> Re:  Digital Review 1/29/90  P. 1 
> "DEC Set For Move into Board Level Market"
> 
> I can't believe my eyes. I don't see how DEC can 
> hope to compete in this market! With 8+ MIPS 68030 
> boards going for $2500. And the new Heurikon 68040 
> 25MHz board at 13.5 MIPS going for $3400.
...
> A $10,000 price difference for 2 DEC boards..
> 
> (Please, only respond to my assertions if you know 
> FACTS such as having a board in front of you to 
> look at. I don't need a lecture on the features of 
> VMS, etc, that "take a lot of special chips" or 
> other such useless generalities.)

What facts do you want?  It's obvious the DEC pricing for CPU boards used in
DEC systems bears no relation to the cost of manufacturing the board or it's
marketability.  This is done intentionally to prevent 3-rd parties from using
DEC cpu boards to make "compatible" systems and to preserve profit margins on
"upgrades" and "service spares".

If you are not convinced, look at the prices for things like 6300 cpu vs 6200
cpu card (essentially the same) or for a 785 or 8650 boardset vs. the original.
The system COST of a 6300 is probably identical to a 6200 and the 6400 might
cost maybe 5-10% more to build.  The $50K price difference between base systems
reflects what DEC wants to charge to create a "product line" and what customers
are willing to pay in the absence of effective competition (VMS captive base).

Now, after a period of years, DEC is remembering that they used to make money
selling Q-bus PDP-11 SBC's and maybe they feel it's time to hawk u-VAX cards.
You can only charge n times what the competition is charging and hope to have
any success even with the "value added" of VMS, ELN or whatever, so they have
to more reaonable pricing on these products.

-- 
George Robbins - now working for,     uucp:   {uunet|pyramid|rutgers}!cbmvax!grr
but no way officially representing:   domain: grr@cbmvax.commodore.com
Commodore, Engineering Department     phone:  215-431-9349 (only by moonlite)