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May 2000

Phoenix 3000 sells off 9x7s for a song

Sale prices drive ownership of licensed systems below $3,000 for developers and consultants

Used computer distributor Phoenix 3000 is offering something for sale at a new price point this month — a fully licensed HP 3000 system whose sale price is lower in number than the computer’s model.

Series 9x7s went on sale during April for $2,950 before taxes and shipping, including HP database software and the operating system. The distributor, operated by e3000 North American distributor Client Systems, has a “huge inventory of 9x7 servers,” according to business development manager Sean McCloskey. Phoenix wants to move out the systems into the customer base at a price pretty much unheard of for licensed 3000 hardware.

The offer lets pretty much anyone who doesn’t want to resell the 9x7s participate in the sale, McCloskey said. A 20-user minimum license with IMAGE/SQL is included with the low-end system, a 927 to 947 LX two-slot chassis with 64Mb of memory and a console. Phoenix has bundled a 4Gb disk and a DDS-2 DAT tape, both units used, with the hardware.

An RX option for the systems is also on the block at $1,000 extra, offering a 4-slot 927 or 947 system, 32-user license, and new 9Gb disk and DDS-2 tape units. Phoenix (303.873.4152, www.phoenix3000.com) will pre-load MPE/iX on the systems in either 5.5, 6.0 or 6.5 versions as requested by a customer. The $3,950 option gives customers one year of free OS1-level hardware support, access to HP IT Resource Center support and a warranty serviced by the HP Customer Engineer organization.

McCloskey said that Phoenix wants to make it “as easy at possible for all to continue production, development, testing and training activities requiring MPE/iX.” Although his original Internet message about the offer was aimed at the 3000 developer and consultant community, McCloskey said that qualification for the systems would be loose.

“I’m going to be pretty easygoing on that,” McCloskey said. “We’re flush with these guys. The only criteria I’d really like to establish is that it’s not for resale. I don’t really want to see the broker channel get these.”

Systems at the sale price point Phoenix is offering can be found on the broker market, but HP requires a formal license transfer to provide service on such brokered systems. The Phoenix systems, being sold through an arm of HP’s official channel, have already had licenses verified and readied for transfer.

For the purposes of the sale, McCloskey said that “consultant means you could be an employee of just about anybody and do worthwhile things on the 3000.” Phoenix 3000 also supplies refurbished HP 3000s to the authorized North American e3000 resellers.

The 9x7 servers have some downsides to go along with their low price. The systems are rated at the bottom of HP’s performance scales, equivalent to a Series 918, and cannot be upgraded to other 3000s such as the 9x8 or 9x9 line. And HP will be ending support service for the 9x7s in April of 2002. McCloskey said that second-year support options can be purchased from HP for $85-$200 per month for the 9x7s, and s support for the period after April, 2001 would be at this month-to-month rate.

Lowering the cost of entry-level hardware is another piece in the ownership puzzle to bring the 3000 within reach of smaller developers. HP introduced an $850 per year Solutions Provider Program last year that provides software support, databases and HP utilities in its MPE/iX option.

The Phoenix deal is focused “on people who are pretty savvy about the 3000 already,” McCloskey said. “I would expect a lot of them won’t need a lot of hardware support.”

 


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