Atlantic Computer Company: A Bundle of Pricing Options Student Spreadsheet Supplement

Harvard Business School Brief Case: Atlantic Computer Company: A Bundle of Pricing Options (#2078)
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Created 1/8/2020
Exhibit 1: Projected Market Volumes by Segments (in units)

2001 2002 2003

Basic Segment (Units) 50,000 70,000 92,000
High Performance Segment (Units) 200,000 205,000 210,500
Total Estimated Market for Servers (Units) 250,000 275,000 302,500
 Exhibit 2: Test Results from PESA Software on Tronn Servers from a Variety of Application Types

Atlantic Internal Performance Testing Results

22-Jul-00

Application Tested Tronn with PESA Tronn without PESA

High Performance / Compute Intensive
Workloads (e.g., running complex scientific
models) 180 187
Graphics Applications (e.g, creating custom
graphics / videos) 280 281
Enterprise Applications (e.g., supply chain
management) 264 254
e-Mail Applications (e.g., Microsoft Outlook,
Lotus, Notes) 341 300
File Sharing (e.g., shared storage and data backip
applications) 812 404
Web Services (e.g., running websites such as
www.espn.com) 2222 542
pplication Types
 Exhibit 3: Salient Pricing Information

Labor (# of servers an
Electricity Cost of Applicaiton "administrator" can
Cost Information (Per server) (Annual cost) Software Licenses manage)
Basic Server $250 $750 40
High Performance Server $400 $750 20

Atlantic Computer Price per Server Cost per Server

Tronn (Basic) $2,000 $1,358
Radia (High Performance) $11,000 $7,586

Ontario Computer
Zink (Basic) $1,700 $1,214