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20050715 Friday July 15, 2005


Moore's Law meets Pricing

There's a great article in the Economist this month about the current mess that's happening in software pricing. Moore's law's predictions about the number of transistors on a chip look like they'll continue to hold for quite a while, but we're quickly losing the ability to translate that into clock rate. This is driving every chip manufacturer to create multicore systems. Probably the most extreme is Sun's Niagra, with (effectively) 32 CPUs. Software vendors like Oracle havn't been cranking up their prices while Moore's law has been expressed in the clock rate, but now that it's being expressed in CPU cores, their pricing is set to track Moore's law (IT managers: panic now). It seems to me that this whole flap can be fixed by a bit of spin doctoring, weasel wording, marketing: there's no such thing as a multicore chip — they're single CPUs that do a great job of supporting multithreading. (wink)

(Fri Jul 15 09:04:15 PDT 2005)
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Comments:

Niagra may be an excellent marketable name, as it recalls a very popular medication, but I checked at the link and the other name used by Sun has a third *a*. :-)

Posted by serge masse on July 19, 2005 at 06:52 AM PDT #

Until the (I hope) backlash over per-core software licensing happens, I wonder what the effect of the current per-CPU pricing model has been on the hardware market. Where I work, we recently had to recommend server specs to a customer who was going to buy a new machine to run SQL Server. We recommended a single CPU machine, simply because it would keep their SQL Server license costs at a minimum. The software vendor's licensing model suppressed the hardware vendor's revenues.

If someone is going to have to buy a 32-CPU license to run Oracle on a single Niagra CPU, my guess is that Oracle shops will avoid buying Niagra-based servers to host Oracle, which is bound to affect Niagra sales.

Stop the insanity.

Posted by Dave Glasser on July 19, 2005 at 08:03 AM PDT #

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