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Message Posted: Fri, 13 Jun 2003 @ 21:45:31 GMT

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Subj:   Open Systems v/s Proprietary
From:   Anomy Anom

<-- Anonymously Posted: Friday, June 13, 2003 15:56 -->

Neteszza v/s Teradata

Here are few examples that are "somewhat" related to the subject..

--> Let's look at microprocessor industry:

Some of the major players were CISC (Complex Instruction Computer Set - Microprocessors like Intel 386, Pentium etc.), and RISC (Reduced Instruction Computer Set - Processors like Intel I890, Motorolla 88000) and then there was SPARC.

*** Long run survivor: Intel CISC because it was widely used. (CISC was an offspring of RISC - just like the current teradata discussion where it was proprietary hardware solution that was made open systems and currently there is an attempt (Neteszza) to go back to proprietary hardware..).

NOTE: HP tried with PA RISC (Proprietary), Digital tried Alpa (Proprietary) and then there was Power PC

None of them survived long enough to be profitable for end users and the manufacturer.

Reason: In my opinion, the cost to keep up with proprietary hardware technology advancements is so steep that unless you have a bigger base or an extremely high margin to support it won't survive.

I think SUN SPARC processors survived partly because of it's niche in UNIX Server Space - Not necessary the SPARC technology. Microsoft did not have any competetive Server offering at that time. In my opinion, NCR/Teradata is also selling the Hardware at premium more because of it's niche in Teradata Software. (well justified)

Summary: For proprietary solutions, the key is to have a roadmap that can cost effectively beat the advancements in Open Systems space.

---> Look at technology standards.

MCA (Micro Channel Architecture) from IBM. I think was a great architecture (from reliablity perspective). However PCI became a choice (all the hardware we get today are usually PCI - just plug in and it works).

Reason: MCA was proprietary - PCI was Open systems.

BOTTOM LINE: Total Cost Of Ownership over time to provide equal or better results.

So far, Open Systems and COTS (Commercial off the Self) Solutions has proved itself as a viable business bet.

Waiting to hear from others...

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