Linked by Thom Holwerda on Sun 29th Oct 2006 23:09 UTC
Morphos Genesi has announced its Open Server Workstation: "The Open Server Workstation is a six layer board with two 970MP processors, the CPC945 and Broadcom's HT-1000 and 2000 chips. Excepting those parts, the board and component cost is below USD 200. Here is the Business Plan [.pdf] we wrote for the board."
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RE: Yes, a blog
by alcibiades on Mon 30th Oct 2006 06:54 UTC in reply to "Yes, a blog"
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Not so sure about the business plan.

It calls for selling 5k units in 2006 with a total marketing spend of $50k. The following year, this rises to all of $100k, but they sell 20k units.

Product development expenses are light - $100k each year. There's nothing at all in there for product support of the OEMs. Well, maybe you don't need any? Or maybe this is included under salaries, which are about 750k in year one and double that in year 2.

The price is 1,500, which must be price into the OEM channel. Is this competitive? It may be, but there is no competitive analysis of pricing, channel margins and so on.

The plan will be viable if there is pent up demand for the product at that price. Presumbably there were internal discussions at which real evidence of this from customers was put forward. But if they don't have orders in hand now for the first 5k, the first year will be shot. If they need much extra spend on the channel, either in support or discounts, or if the channel doesn't move it out rapidly, there is not much room for manoevre.

Possibly there is more backing for the project than appears in the plan. Looking just at what is in it, though, you would be inclined to question the numbers very closely. In the end the really big thing you need to be satisfied about is the existence of substantial instant and continuing demand for PPC servers at this OEM price.

If there are a few decent customers with good track records ready to sign up to moving the volumes, fine. Otherwise it looks dubious.

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