Infoconomy: Sun considers $1,100 cheap.
The PCs, which have still to be given a brand name, will be assembled from commodity components that Sun will source from the open market. Sun intends to sell the Linux PCs in units of 100 at a cost of around $1,100 (1,125) each, with part of that paid upfront and the remainder spread over the lifespan of the PC.
While that unit cost is actually slightly higher than an equivalent machine from Dell or HP, the real cost savings will come from replacing Microsoft software with open source alternatives and from lower administration and support costs.
Aside from the Linux operating system, the PCs will mimic a typical Windows set-up by using the Gnome desktop environment, the Mozilla browser, the StarOffice applications suite and the Evolution clone of Microsoft Outlook.
This seems to be good, however I’m trying to figure out where Sun isn’t going to loose their shirt on this computer. I’m sure that the specs on this commodity hardware machine will be easily duplicated for 25-40% less through other vendors or by building the machine yourself. It also appears that once again Sun will be using its software (a derivative/rebranding of Red Hat Linux) in order to sell hardware. Anyone can go download .ISOs of Red Hat Linux, but they’ll have to spend a premium on hardware in order to get Sun’s identity management software and control panel.
I hope that Sun does well, but I’m not sure if they’ll be able to. [via Kenneth Hunt and Newsforge]