[svlug] Linux and hardware

[Jeffrey Siegal]

Rafael Skodlar wrote:
> Oh, and those who say there is no money in HW. How about Cobalt Networks?

Well, Cobalt never made any money either, because their volume wasn't
high enough.  What they did do right was sell out when the selling was
good (i.e. before the dot com crash).

However, at least Cobalt had a chance of success, because their business
model involved generating high margins on innovative hardware designed
for low manufacturing cost (and offering the customer low power usage as
compelling value proposition).  I don't think VA ever had that kind of
chance, because I've never seen anything to suggest that VA had either
innovative hardware or the efficiency necessary compete in the cutthroat
commodity PC hardware business.