HP s Merced Decision
Diana P. Gomez - 11616439
1. Does the market need the Merced chip?
The market needs a better chip. It needs to be faster. It must be capable of processing more instructions in the same amount of time. So when Merced project started that was the promise. In fact, as we can see through the case, HP and other companies were working already in similar technology. Additionally the market was showing symptoms of reaching the full performance in the actual technology, RISC. It was necessary to find a different technology that could add value and, in time, could replace the existent one.
2. Who will benefit the most from the introduction of the Merced chip in the markets served by ESG? Who will benefit least, and why?
In theory, the Merced chip will benefit the high-end microprocessors, the very high-end computing industry. In other words will work with servers and corporate computers that manage big amounts of information. It is conceived for supercomputers and workstations used by scientist and engineers. It is design for high performance.
Even though, the focus for HP is the high-end technology and mission-critical server market, Merced is also compatible with Windows operating environment, opening the possibility for servers, workstations and PCs.
The low-end performance technology such as calculators and hand-held devices are not included in the scope of work of Merced.
3. What should Jim Davis recommend?
Looking at the possibilities, Jim Davis should suggest:
- Stablish a partnership with SUN
The partnership will stabilize the customer base for HP and will prevent their customers leave HP because of the idea of lack of support for the PA-UX technology. Also, will keep the revenue in line until the new technologies can generate their own income.
- Release Merced as soon as it is ready.
HP cannot abandon the Merced Project. There is too much invested in the new technology. Additionally, is obvious that the market for the PA-UX – RISC technology is
starting
1. Does the market need the Merced chip?
The market needs a better chip. It needs to be faster. It must be capable of processing more instructions in the same amount of time. So when Merced project started that was the promise. In fact, as we can see through the case, HP and other companies were working already in similar technology. Additionally the market was showing symptoms of reaching the full performance in the actual technology, RISC. It was necessary to find a different technology that could add value and, in time, could replace the existent one.
2. Who will benefit the most from the introduction of the Merced chip in the markets served by ESG? Who will benefit least, and why?
In theory, the Merced chip will benefit the high-end microprocessors, the very high-end computing industry. In other words will work with servers and corporate computers that manage big amounts of information. It is conceived for supercomputers and workstations used by scientist and engineers. It is design for high performance.
Even though, the focus for HP is the high-end technology and mission-critical server market, Merced is also compatible with Windows operating environment, opening the possibility for servers, workstations and PCs.
The low-end performance technology such as calculators and hand-held devices are not included in the scope of work of Merced.
3. What should Jim Davis recommend?
Looking at the possibilities, Jim Davis should suggest:
- Stablish a partnership with SUN
The partnership will stabilize the customer base for HP and will prevent their customers leave HP because of the idea of lack of support for the PA-UX technology. Also, will keep the revenue in line until the new technologies can generate their own income.
- Release Merced as soon as it is ready.
HP cannot abandon the Merced Project. There is too much invested in the new technology. Additionally, is obvious that the market for the PA-UX – RISC technology is
starting