Just a few responses <stretches fingers> :)
On 2/25/11 5:16 PM, Ivar Janmaat wrote:
Hello Craig,
Let me state first that the Oracle Sun Ray solution is the only usable
solution in the market for large scale (Desktop as a service) solutions.
Al others so called solutions are vaporware compared to the feature set
of the Sun Ray.
Thank you very much, we love to hear that.
> The only question is how do you market this.
> I know this is not a SR sales list but there is a lot of knowledge about
> the how to market Sun rays on this list.
If we are talking about a product you can buy, it has been marketed.
Advertising is a component of marketing. Marketing is the entire
process of bringing a product to market. The 3i is far more expensive
than the 3 or 3i from a marketing standpoint. Advertising? That's
something I'm sure you'll see more of. I'll push hard for a Sun Ray
cameo in Iron Man 3. ;)
I am not sure if Oracle really understands this great product they bought.
They understand. We wouldn't be having this conversation if they didn't.
I'd be too busy looking for a job.
This pricing model is more in line with what VMware is doing with esxi.
I think software is a bit different than food since it scales much
better. With software, lowering the entry barrier really works to sell
new products.
As far as I know VMware is doing ok too .... ;-)
This thinking is a bit of the problem. What hardware does VMware sell?
What's the margin on software? (Hint, it's 1% more than 99%)
Hardware only has so many margin dollars to deal with. Rarely is it
enough to pay for the staff that develops and supports it. Those are
percentages too, so if the margin is x% on a 3 and the same x% on 3i, in
actual dollars in the margin is more on a 3i, but it's less when it
comes the cost to make and support the product. Put it this way, if a
Sun Ray 3 and 3i both break, which one is more expensive to replace? If
there's a bug in Esx or Esxi, there's zero difference because it's the
same exact thing. All esxi is the datacenter version of the all that
"limited edition" or "trial" software that comes preloaded on PC. It's
worth doing esxi because one out of X customers buy esx.
Question is, where is vSpherei? Viewi? They aren't lowering the
barrier to entry, they are lowering their sales costs to get an esx
customer. If you weren't using Sun Ray and Oracle VDI in conjunction
with esxi, you'd be being buying a View license and be looking at that
Wyse S10 with the 60% first year maintenance cost. Esxi by itself is
useless to you. It's a widget. Sun Ray and Oracle VDI are the real
things that have lowered entry barriers and allowed you to enter the VDI
marketplace.
This has parallels to "if the price was cheaper, they'd sell more Sun
Rays" argument. Consider that there are 1.4 billion PCs out there
today, 304 million of them are in our addressable markets. Less than 4%
of those 304m are virtualized.
Now ask yourself if you were a manufacturer that dealt in building
things like computers, would you tool up so you could get a percentage
of that entire 1.4 billion or would you tool up to get a percentage of
that percentage? It's specialized tooling and changes from project to
project and you are building something you've never built before. You'd
build the "PC". So when you build something like a Sun Ray, you aren't
going to FoxConn who builds for Apple, Dell, and HP all of which are
based off of reference mobo designs from Intel and AMD.
Building a PC is like assembling a piece of furniture from Ikea. You
need a screwdriver and the ability to follow a set of instructions.
Building a Sun Ray is more akin to a craftsman with a quality piece of
wood and specialized wood working tools. You'll never build as many to
get the same price as they particle board and plywood furniture
manufacturers enjoy, but you build a quality product that lasts and has
a loyal following.
This is one reason you see so PCs masquerading as thin clients. It's
far more expensive and requires far more expertise to design something
like a Sun Ray than it does a "cloud PC". The fact that the design of
both the hardware and software has stood the test of time disposable
technology speaks volumes to investment that Sun made, and that Oracle
now makes in this product. To tie it all back together, yes, a 3i costs
more to support because it costs more to make. Ask Toyota what it costs
to support the Prius.
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