Sun CEO On Razors And Blades 233
Kadin2048 writes "In an interview with BusinessWeek online, Sun Microsystems CEO Scott McNealy sheds some light on the company's new business model and future direction. In particular, he said that Sun's recent open source moves were part of a new strategy, where 'The software is the razor. The razor blades are the servers.' The move was called a huge risk by BusinessWeek, and it would put Sun at odds with the more traditional Microsoft-esque model with high per-seat or per-server software licensing costs and use commodity PCs and servers, which may not go over well with investors. But after having seen its stock slide and users flee for Linux and Windows, they arguably have little to lose. Perhaps the most interesting development to Slashdot readers is that in an effort to draw new developers to the platform, Sun is offering a deal that seems torn from a cell-phone company playbook: offering a "free" Ultra 20 Opteron workstation if you sign up for a $29.95/mo, 3-year service contract."
Slashdotted the sun site? (Score:1, Funny)
while we're going with the analogy (Score:5, Funny)
Yeah, right. (Score:5, Funny)
Oh, come on, we can see right through that. It's just another sleazy attempt by Sun to acquire money in exchange for goods and services.
The nerve.
The razor blades are the servers? (Score:2, Funny)
Re:Wrong several times over... (Score:1, Funny)
Styptic? (Score:2, Funny)
What is the styptic pencil, then?
Re:Looks nice -- but there's a whole Opteron Line (Score:5, Funny)
Sun CEO on razors and blades (Score:2, Funny)
Fuck Everything, We're Doing Open Source (Score:5, Funny)
Better Check the Fine Print (Score:2, Funny)
Here are some of the cellphone-like terms from that contract:
- Service plan includes up to 1 Trillion CPU instructions per month, absolutely free.
- Extra CPU instructions are billed at $0.08/Billion peak, $0.03/Billion nights and weekends.
- Free instructions do not include floating-point operations. All floating point instructions are billed at $0.11/Billion.
- Monthly bill will also include a regulatory cost recovery service fee. You agree to pay this fee each month. This fee is not a tax, and it is not a required government payment. It is not possible for you to know the cost of this fee until you receive your bill. The amount of this fee is determined totally at the provider's discretion, it may change from month to month, and you agree that there is no limit how high the fee may be set. You agree that the provider is not required to justify the fee or base its amount on any reason whatsoever.
- If you cancel the contract before the 3-year term is up, you will be responsible for an early termination fee of $75,000 per system per month of contract remaining, up to a maximum of $3,200,000.
- The system remains the property of the provider. At the end of the contract term, you must return it in like-new condition, and you will be responsible for a $2895 restocking fee, plus, at our sole discretion, refurbishing fees for any wear, tear or damage to the system.
- This system is not compatible with household A/C electrical power. This system requires 3-phase, 153 Hz, 67 Volt RMS power. You are responsible for using a compatible power source. Failure to connect appropriate power will destroy the system, and will result in damage fees of at least $17,000. You may purchase optional compatible power from us. Our current rates are $34.50/kWH plus $179/month power connection fee.
- We may change any term of this contract at any time without notice. You agree that any and all changes are binding on you and you heirs.