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Comment by sschueller

9 hours ago

For us dell has become that. Rep changes all the time, what appears to be random pricing and long unclear delivery dates. Instead I can for example go to Thomas Kren and configure my serves online for a fraction of the cost. They have what they list in stock, delivered a few weeks later. Everything is clear and hasle free.

At this point I have the feeling dell just charges you what they think they can get out of you. You push back and the price drops, I don't want to negotiate.

The iron law is that vendors want to become like the old Sun. The only reason they don't is if they are trying to compete their way up the hill. Take away the old Sun and SGI and IBM and now Dell is Sun.

  • Difference is Sun was providing a "full stack" proprietary product including CPUs running a proprietary ISA, Unix OS, compiler, desktop environment and productivity apps. All that Dell does is assembling standard, commoditized parts and putting a free OS on it. Dell's business is incredibly easy to replicate, while Sun's business is extremely hard to replicate. Of course, Sun's competitive advantage turned into a curse when the components of that vertical integration become uncompetitive both features and price wise vs. the GNU/Linux-on-Intel stack. But regardless, Dell could never replicate the vertical integration Sun had.

    • > Difference is Sun was providing a "full stack" proprietary product including CPUs running a proprietary ISA, Unix OS, compiler, desktop environment and productivity apps.

      SPARC was not proprietary, buy fully licensable:

      * https://sparc.org

      Fujitsu sold their own SPARC servers for many years with their own CPUs, and many third-parties put Fujitsu SPARC CPUs into (e.g.) laptops:

      * https://jasoneckert.github.io/myblog/sparcbook3000st-the-coo...

      Can you get an x86_64 CPU from someone other than Intel or AMD? x86 is much more proprietary than SPARC ever was.

      Sun used the non-proprietary Open Firmware (IEEE 1275) for booting (also used by Apple with PowerPC), and SBus (IEEE 1496) for cards before moving to PCI. SCSI and Ethernet/IP were there since forever as well.

      The "proprietary" label on Sun, at least when it came to hardware, was always a mystery to me.

    • Dell puts a fair amount of engineering into their servers (as do other main brands like HPE and Lenovo) so it's unfortunate they've lost their roots from the old mail order sales company.

      If someone else is paying I'd prefer one of these big OEMs for established firmware lifecycle, spare parts and long gray market availability, shock (shipping) and thermodynamics engineering. If I'm paying, Asus or MiTAC (Tyan) are good enough.

    • > Dell's business is incredibly easy to replicate

      Your sentence is a tacit admission that you don't have a very deep understanding of logistics and integration and what it has taken for Dell to build the deep supply chain they have. Yes, it's a commodity system; that's the point; but it's still leagues better than a Supermicro, right? Think about the difference there and why people still shell out for a Dell instead of a Supermicro or Exxact or plain whitebox hardware. There's a lot to a solid Dell server that you might not realize, from disk controllers to iDRAC....

    • > a "full stack" proprietary product including CPUs running a proprietary ISA, Unix OS, compiler, desktop environment and productivity apps.

      this is apple today.

    • Really? When I first met Sun machines they were selling 68k-based Sun machines that were better specced than Apple and Amiga and such but left them dependent on Motorola’s architecture that had indirect address and thus no future.

      Sure they had an in house chip development ARM team right at the time when RISC economics looked good but CPU architecture had to work harder and harder to beat the memory wall and SPARC was not competitive by 2005 and “Hail Mary” projects like CoolThreads were difficult and expensive but did not deliver for customers.

      Hypothetically customers could benefit from that proprietary stuff but they benefit even more from rapid progress is competitive, commodity markets.

      When I was working at the library circa 2005 we were thinking about replacing all the Windows computers that patrons used to access the online catalog (and other services) with a web browser with Sun Rays, we probably would have bought a few hundred of them and we would have bought some SPARC servers to back them up.

      We could have gotten Netscape to run under Solaris but after a week of effort I wasn't able to get Mozilla to build, so no modern web browser. So no Sun Rays. No servers. DTrace and ZFS were great innovations but without the magic of "can run the software you need to run" they are just Blub. Had Sun done the work to get Mozilla running on their machines and forgotten about DTrace and ZFS people might still be using Solaris... but instead DTrace and ZFS found an audience by supporting... the commodity OS!

      (arguably at that time supporting a web browser was the #1, #2 and all the way through #99 task that the Solaris team should have been working on at that time and everything else from Java to Tcl to ZFS was a dangerous distraction... and that's how companies in a position like Sun die)

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DELL was an innovator in this "incomparable pricing" model for normal consumers.

You'd price out a machine and then go look at comparable machines (difficult) from other vendors, then the next day your machine wouldn't be "the" configuration anymore. Instead there'd be half the ram and double the harddrive space for an extra $50, and if you swapped back to what it had been yesterday it'd cost you an extra $200.

IIRC they won business awards for this.

Where's Cartman when you need a vigorous "SHENANNIGANS!!!!"?

  • We sold web traffic analysis software to Dell Europe, around 1998 or so. They never kept their data more than a week. As the traffic and purchase behaviour they were analysing in the store changed so much every week they said (if I remember correctly) it didn’t make any sense to compare the data over time. I took from that that what they sold every week changed all the time. Of course, data storage and processing was then not as cheap as it is today, so maybe there was more to it.

  • try adding wifi, you don't get DVD. Remove DVD, you don't get wifi. It's ridiculous. Dell is a joke of a company

> At this point I have the feeling dell just charges you what they think they can get out of you. You push back and the price drops, I don't want to negotiate.

This is precisely the role of the sales person for something like a service, but for a physical product it is pretty egregious. There is no greater sin than leaving money on the table. There's an old story about someone offering a quote that was apparently pretty low based on reaction, so they quickly add "that was for my assistant" to give way for pushing the number higher.

  • I like this version: The optician quotes the price of new glasses by saying "$100", waits to see if the customer flinches, "... for the lenses", waits again, "... each.".

  • > so they quickly add "that was for my assistant" to give way for pushing the number higher

    I don’t understand what this means? I understand that they bumped the price. But I du not understand what is meant by it being for the assistant? Care to explain?

    • Not OP but the way I read it...

      Electrician: "Okay, so my services start at $100/hr"

      <nobody bats an eye>

      Electrician: "... for when my assistant can handle things."

      Replace Electrician by whatever skilled professional you prefer.

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    • If you play poker, it is the equivalent of pushing 'portions' of your bet out at a time. You push the portion, observe their face and body language, and maybe push the rest.

      The 'that was for my assistant' is just something they say to explain away the earlier quoted price. They are pretending that what they said wasn't the quote for this conversation, it was for another, different conversation, between the salesman and their assistant. This only works when the assistant is not in the call.

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  • I wonder how effective it really is, over the long term, to generate short-term profit by consuming trust like this.

> For us dell has become that. Rep changes all the time, what appears to be random pricing and long unclear delivery dates.

I think this would be expected from a company that has acquired and absorbed EMC and Perot.

That’s exactly what enterprise sales is. Call for pricing, tell the absolute upper limit you can spend, and pay.

> At this point I have the feeling dell just charges you what they think they can get out of you

This is how license compliance shakedowns work. Make sure your DRM is more flexible than theicensing terms, find an overage and see what you can get the customer to agree to.

I have seen senior Oracle sales reps deliberately misreading their license doc to inflate what is owed.

  • > I have seen senior Oracle sales reps deliberately misreading their license doc to inflate what is owed.

    "I guess I can't pay so much because such a huge fraction of the contract volume goes to my lawyer."

I think this is a case of AI ruining the hardware market. We used to almost exclusively use Dell, but now we've been forced to look elsewhere and go through validating new vendors. The lead-times are ridiculous, and these guys now only pay attention to the really big guys. Not sure I can blame them though, you've gotta do what's best for your business.

  • Dell was very much moving this way before modern AI explosion. The inconsistency on pricing alone depending on what rep was helping you also became a problem. I could often times call in direct and order via business line cheaper than dealing with my account rep. No reason to jump through so many hoops.

    I prefer the "This is the price" model and just make it consistent. I can't wait until AI helps us remove multiple layers of middle men across Sales in general.

    Just let me buy it and move on.

    • > I can't wait until AI helps us remove multiple layers of middle men across Sales in general.

      Based on how things are moving, I think it's more likely that AI will _replace_ the layers of middle men (with layers of "middle AI"), then that those layers will be _removed_.

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    • > I can't wait until AI helps us remove multiple layers of middle men across Sales in general.

      Monkey's paw - now you have to deal with a layer of bots.

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    • that's great as an attitude, the problem with it is that money is made up and so are prices. Business have an inventory and expenses, and hopefully they can sell enough product before their debtors come calling. There's no right price for something. Underpriced, Overpriced, the only qualifier is: is the company still in business? Sony could give Playstation 6's away for free, so long as people bought games for it, but culturally, that would look desperate, so that will have to charge money for it, when they announce it. The only thing something is worth, is what someone else is willing to pay for it.

  • Periodic component shortages have been a fact of life in the server business forever. Like a key supplier's factory burns down or something.

    The key thing is being transparent with customers on price, availability, and delivery schedules. In the short term server vendors can use tricks and personal relationships to extract higher profit margins but eventually the senior executives at major customers figure out what's happening and start looking for other options.

  • > The lead-times are ridiculous, and these guys now only pay attention to the really big guys. Not sure I can blame them though, you've gotta do what's best for your business.

    I don't blame them in the sense that I wish for them to be imprisoned or anything. But I wouldn't do business with them, either. I want business partners whom I can count on, not ones who will stop returning my calls as soon as a more lucrative opportunity arises.