Quoting Joe Landman <[EMAIL PROTECTED]>, on Tue 27 May
2008 05:52:56 PM PDT:
Jim Lux wrote:
The value of a supercomputer under the desk is primarily to the end
user (faster whatever to free up an expensive engineer's time).
They don't see much difference between buying the software for a
single processor or multiprocessor. The ISV won't get many
incremental sales from having a fast box to run it on, because the
customer would probably buy it in
Hmmm.... splitting proverbial hairs here ...
Or more, there's a psychological difference between the same dollar
spent on fast hardware or on software to run on that fast hardware,
particularly if the user experience is essentially identical, except
for speed. That is, people will more readily pay for something
tangible.
If the total cost of the solution is X(hw)+Y(sw) (hardware and
software), and the solution cost on an "accelerated" box is
x(hw)+Y(sw), where x << X, then the ISV may be able to convince the
customer to buy at least incrementally more licenses of the software
(which at the engineering shops we have dealt with, tends to be one of
the major limiting cases for use). Especially if N=Int(X/x) is large
enough ( N>3 or so), then the ISV can convince the customer to save
money buy more licenses, on less hardware for about the same
performance. ISVs really want the end users to buy less hardware. Or,
more accurately, less expensive hardware. This frees up more capital
for ISV product purchases.
But often, SW purchases are treated differently than HW, if not in
terms of the accounting (i.e. depreciation of HW vs annual license
fees for SW) than psychologically.
If I go out and spend $100K on a gofast computer, I can carry that
100K on my balance sheet as an asset. If I spend $100K on a SW
license, it's not so obvious that I can carry it as an asset. And
let's not even get in to Section 179 or other tax credits.
Jim
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