nanog mailing list archives
RE: An Attempt at Economically Rational Pricing: Time Warner Trial
From: <michael.dillon () bt com>
Date: Sun, 20 Jan 2008 23:51:34 -0000
It's very true that the underlying cost of the technology is falling. However, the cost of chip development is growing rapidly as device size falls (tapeout costs are >$1M USD today) and the market is somewhat limited, so the ability to amortize your design cost across volume is somewhat limited.
To further limit the market by effectively constraining it to your own internal consumption is going to further increase this effect.
Normally, when a device designer contracts out manufacturing of their design to the Asian factories, they constrain the factories to only produce devices for the designer themselves. If the designer of such comodity devices were to take an open-source approach, and allow the Asian factories to produce devices for anyone who wants them, then this constraint is removed. Of course, the price lowering still depends on lots of others adopting the same hardware so this only partially solves that problem. --Michael Dillon
Current thread:
- RE: An Attempt at Economically Rational Pricing: Time Warner Trial, (continued)
- RE: An Attempt at Economically Rational Pricing: Time Warner Trial Rod Beck (Jan 18)
- RE: An Attempt at Economically Rational Pricing: Time Warner Trial Mark Foster (Jan 18)
- RE: An Attempt at Economically Rational Pricing: Time Warner Trial Tomas L. Byrnes (Jan 18)
- Re: An Attempt at Economically Rational Pricing: Time Warner Trial Patrick W. Gilmore (Jan 18)
- Re: An Attempt at Economically Rational Pricing: Time Warner Trial Brandon Galbraith (Jan 18)
- Re: An Attempt at Economically Rational Pricing: Time Warner Trial James R. Cutler (Jan 18)
- RE: An Attempt at Economically Rational Pricing: Time Warner Trial michael.dillon (Jan 18)
- RE: An Attempt at Economically Rational Pricing: Time Warner Trial Tomas L. Byrnes (Jan 18)
- Re: An Attempt at Economically Rational Pricing: Time Warner Trial William Herrin (Jan 18)
- RE: An Attempt at Economically Rational Pricing: Time Warner Trial michael.dillon (Jan 20)
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- RE: An Attempt at Economically Rational Pricing: Time Warner Trial michael.dillon (Jan 20)
- RE: An Attempt at Economically Rational Pricing: Time Warner Trial Rod Beck (Jan 18)
- Re: An Attempt at Economically Rational Pricing: Time Warner Trial Michael Holstein (Jan 18)
- Re: An Attempt at Economically Rational Pricing: Time Warner Trial Patrick W. Gilmore (Jan 18)
- Re: An Attempt at Economically Rational Pricing: Time Warner Trial Patrick W. Gilmore (Jan 18)
- Re: An Attempt at Economically Rational Pricing: Time Warner Trial Scott McGrath (Jan 18)
- Re: An Attempt at Economically Rational Pricing: Time Warner Trial David Conrad (Jan 18)
- RE: An Attempt at Economically Rational Pricing: Time Warner Trial Rod Beck (Jan 19)
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- Re: An Attempt at Economically Rational Pricing: Time Warner Trial Scott McGrath (Jan 19)
- RE: An Attempt at Economically Rational Pricing: Time Warner Trial Rod Beck (Jan 19)
- Re: An Attempt at Economically Rational Pricing: Time Warner Trial Taran Rampersad (Jan 19)