I don't really want to defend IBM pricing, but gross margin is not the same as profit. It is much more expensive per customer to maintain software that has a small installed base than software that has a large installed base. The number of bugs found is only slightly less for a small installed base.
-----Original Message----- From: Phil Payne [mailto:[EMAIL PROTECTED]] Sent: Thursday, February 20, 2003 8:47 AM To: [EMAIL PROTECTED] Subject: Re: URGENT! really low performance. A related question... > There is no relation between the cost of designing and building hardware to the cost >of developing and maintaining software. Which is why IBM's gross margin on hardware is 31% and its gross margin on software is 87%. -- Phil Payne http://www.isham-research.com +44 7785 302 803 +49 173 6242039
