[j-nsp] Juniper MX104

joel jaeggli joelja at bogus.com
Tue Nov 12 15:59:48 EST 2013

On Nov 12, 2013, at 12:46 PM, Saku Ytti <saku at ytti.fi> wrote:

> On (2013-11-12 20:14 +0000), Tom Storey wrote:
>> Why so much just to enable some ports? How do they come up with that
>> kind of price? Pluck it out of thin air?
>> The hardware has been paid for, and I know thats only list pricing,
>> but it still seems ridiculous.
> The question might have been rhetoric. But I'll bite.
> The BOM on these boxes is nothing, I'm guessing less than 1kUSD. But the
> volume you can sell them also is very very small, so the margins need to be
> very high to be able to design and support them.
> Licensing allows you to sell to larger group of people, people who normally
> would buy smaller/inferior box, now can afford it,  which in turn allows you
> to reduce your margins, making you more competitive.
> I actually like it. I wish vendors like Agilent/Ixia, Spirent would sell
> test-kit with some sort of 'per hours used' license. Lot of SPs have need for
> proper testing kit, but only will need them very irregularly. And renting is
> always such a chore. It's same thing there, BOM is nothing, but volume is even
> lower, so prices are ridiculously high, consequently proper testing is very
> rarely done by other than telco size SPs.

It’s one of those things where you work with account team. if the commercial terms don’t work out for most potential buyers, then the product won’t be successful and either things will change or they won’t. 

> -- 
>  ++ytti
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