SUNFLASH ! ---------- Sunflash is an electronic mail news service from Sun Microsystems, Ft. Lauderdale, FL. Please address comments to John McLaughlin (sun!sunvice!johnj or johnmclaughlin@sun.COM). (305) 776-7770. Sunflash is targeted at Sun customers and users, not Sun employees as much of the information posted to sunflash is already available to Sun employees. If you have any information that you think would be of value to Sun users and customers, please email it to sun!sunvice!johnj. -johnj ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Competitive Analysis of the DEC Trade-in Announcement Oct 13, 1989 DEC is attempting to make inroads into Sun's installed base through what they believe is an aggressive trade-in program. Here are the details: - one-to-one trade-in of 3/50s or 3/60s (or VAXstation 2000) for a DECstation 3100 or VAXstation 3100 - $2,000 allowance on 3/50s and $4,000 on 3/60s - DECstation 2100 is specifically excluded from this program - Selling through a direct mail campaign Offering trade-in allowances is DEC's weak attempt to gain back workstation seats they have lost to Sun. Their own accounts have defected because of our commitment to standards, open systems, a robust UNIX, available applications, graphics and our SUPERIOR workstations. SunUpgrades - NO REASON TO CHANGE VENDORS Sun has historically provided attractive and affordably priced upgrade paths including upgrades for our most recently announced products. With the SunUpgrade programs, there is absolutely no reason to switch to DEC. Look at the comparisons in the next section of out-of-pocket costs and Sun implicit trade-in values that you can achieve with upgrades. Sun wins on all counts: cost, trade-in value, and the BEST products on the market. PRODUCT COMPARISONS COST TO CUSTOMER: It costs a customer substantially more to buy a DECstation 3100 than to upgrade his 3/50 or 3/60 to a SPARCstation 1. On top of this, when trading in a system, the customer must write-off the residual book value immediately. This increases the effective costs (in the current fiscal period). a. Trade-in a 3/50 List Price DECstation 3100/15" Mono/8MB @ $11,900 (Note: 15" monitor vs. 19") 3/50 Trade-in allowance $2,000 --------- Total Cost to Customer $ 9,900 (DEC Solution) UG3/50-4-C8 $ 6,995 (Sun Solution) --------- Savings vs. DEC $ 2,905 b. Trade-in a 3/60 (Mono) DECstation 3100/19" Mono/8MB @ $12,900 3/60 Trade-in allowance $ 4,000 --------- Total Cost to Customer $ 8,900 (DEC Solution) UG3/60M-8-C8 $ 5,595 (Sun Solution) --------- Savings vs. DEC $ 3,305 c. Trade-in a 3/60 (Color) DECstation 3100/19" Color/8MB @ $17,900 3/60 Trade-in allowance $ 4,000 (Same as mono) --------- Total Cost to Customer $13,900 UG3/60C-8-C8 $ 6,595 --------- Savings vs. DEC $ 7,305 SUN TRADE-IN VALUE: As you can see in the following calculations, Sun is providing a much greater trade-in value than DEC on both the 3/50 and 3/60 ($3,000 and $4,500 respectively). a. For a 3/50 4/60M1-8 @ $9,995 UG3/50-4-C8 @ $6,995 (Upgrade 3/50 to 4/60) -------- Sun Trade-in Value $3,000 b. For a 3/60 4/60M1-8 @ $9,995 UG3/60M-8-C8 @ $5,595 (Upgrade 3/60 to 4/60) -------- Sun Trade-in Value $4,500 OTHER FACTORS - Customer must reinvest in peripherals and application software - Financial analysis improves even more when looking at color and GX systems. - With a trade-in, the customer must write-off the existing book value in the current period. - Ask DEC to demonstrate their commitment to upgrades. Sun offers the most aggressive upgrade program in the industry which covers our entire product line. - PLUS all the advantages of having a SPARCstation 1 workstation Should you need more detail on specific upgrade programs, have your Sun sales representative check the Oct. 1, 1989 Price List. (Note that the above price comparisons are based upon US List Prices. Discounts from both Sun and DEC vary demending on many factors.)