I. DATAQUEST ALERT: January 21, 1993 "In a survey of 375 users, Dataquest found... - Sun users show lowest brand loyalty, HP users show the highest - Only 52.4% of Sun users said they will buy Sun again - Compared to 76.2% of HP users said they would buy HP again - "...effects of [HP] marketing programs such as TradeUp'93 threatens to remove Sun's price advantage over HP for low-end systems" II. SPARCstation 10: Model 20 Announcement December 1992, Sun formally announced their SPARCstation10 Model 20. This system was being sold prior to the announcement and continues to be sold as a result of Sun's inability to provide sufficient volumes of the SS10 Model 41, or any model 52 and 54s. PC Week (12/21/92) claimed that Sun could not ship the SS10 Model 41, 52 and 54 due to design changes to it's SuperSPARC microprocessor. These products were announced in May 1992, original expected ship date was September 1992, and now the latest estimate is after March 1993. SPARCstation 10 Model 20: - 33Mhz SuperSPARC microprocessor - About 2X the performance of a SPARC 2 - About 10% slower than Model 30, with about a 10% lower list price - Not upgradeable to SS10: Model 30 - Upgradeable to SS10: Model 41 ONLY for $6500 - Does NOT support high-end graphics (GX plus, CS or GT) SBus cards, these are only supported when the Model 20 is upgraded to a Model 41 - Does not support ISDN and high-end audio together, until upgraded to a Model 41 - Parity performance with HP 715/33 - HP 715/50 has parity integer, about twice the floating point - HP 715/33 and 715/50 are $2505 to $7100 LESS! - Available now, worldwide - Sun-3 and 386i systems require a full system trade-in to go to a Model 20 Pricing: (US List) Config SS10: 20 HP 715/33 HP 715/50 ------------------------------------------------------------------------ 1 CPU, 32MB memory $16,495 $9,395 $13,990 disk, 19" grayscale Why is the SS10: 20 so expensive? According to Sun, it is the same as the Model 30 except for: - the processor: Model 20 is 33Mhz, Model 30 is 36Mhz (Their costs haven't changed from a model 30 or 41, just a different chip) - Model 20 does NOT support high-end graphics (GX plus, CS or GT) SBus cards, these are only supported when the Model 20 is upgraded to a Model 41 or faster (They probably crippled the system to avoid cannabilizing future 41 sales) - Does not support ISDN and high-end audio together, until upgraded to a Model 41 (They either crippled the system here too, or the frequency can't handle this functionality) HP Advantages: - Better pricing for parity or higher performance - HP has a great upgrade path for 715 line of products - HP has low to high-end graphics on 715 products - HP will provide 10% trade-in credits for the Sun-3 and 386i systems when purchasing certain 715 products Potential Hot Spot: - If SS10: 41 is the target system, it will compete with the HP 735. HP 735 will outperform the 10:41 but the price will be higher. Sell the HP 715/50 today, with upgradeability to newer 715's in the future. Customer can get started with a system that's faster than a Model 20 and still have investment protection. III. Sun's Trade-in program vs. HP TradeUp'93 (Americas Only) NOTE: see article V. TIPS ON SELLING INTO APOLLO'S INSTALL BASE Sun initiated a trade-in program in 1992 that provided credits towards the SPARCstation IPX and an upgrade to the SS10: Model 41. It was a limited program and forced users into a 2 step hardware upgrade, and a 2 step OS upgrade. Their target was and continues to be HP's workstation installed base, specifically Domain customers. On January 25, 1993 Sun announced that they beefed up their trade-in program to include credits on SS10: Model 30 and lowered the price of upgrading SPARC 1. 1+, 2, IPX to a SS10 Model 30. Wow! They won't take back PC's (even though they claim they are pointing their arrow at that market), or Xstations, nor do they give you discounts on software products and Xstations purchased at the same time. HP does all this and more with TradeUp'93! Sun vs HP Trade-ins Programs ------------------------------------------------------------------------- TRADE IN HP 715/50 Sun SS10:30 (19" color, 32MB memory, disk) ------------------------------------------------------------------------- Any Domain system List: $15,495 List: $20,495 Any SPARCstation 15% disc (2,324) Credit (8,000) Net: $13,171 Net: $12,495 DELTA = $676 * For $676 HP gives you: - 26% more floating point performance - 3 times the vector performance - 2 times the internal disk capacity * Better yet, trade in 20 or more systems and get a 20% discount from HP- the delta is then $99 in HP's favor! HP also lets you beef up that configuration with disk and memory, layered software products and Xstations, AND get the 15% discount on all of them as well! HP lets customers choose the system THEY need, and does not limit them to two configurations. HP HAS A SUPERIOR PROGRAM, SELL IT WITH CONFIDENCE!!!!