Integrating Memory With OEM Systems - Hewlett Packard's VISUALIZE workstations - Industry Trend or Event

Computer Technology Review, Dec, 1999 by Bosco K. Sun, Boba Popovic

Hewlett Packard's VISUALIZE series of workstations area perfect example of how a memory supplier is able to integrate its products into systems produced by an OEM. Engineers use these high-end design workstations, running on Unix, Windows NT, and Linux, for everything from aircraft and automotive design, complex IC verification, and Systems-On-a-Chip (SOC) simulation to designing animated characters for next year's cinema blockbuster. The new HP VISUALIZE N class workstation, with its 8GB RAM, is a good example. It is a computer with graphics.

The Role Of The Memory Supplier

With this type of high-end product, where does a memory manufacturer fit into the overall picture? Obviously, he must be on the "leading edge" of current technology (and he can also benefit from having a "window" into the OEM's design process). In most situations, however, a memory supplier does not initially play a major role in an OEM's marketing infrastructure for such products as high-end workstations or, for that matter, for servers and PCs. The memory supplier's primary concern is with VARs (Value-Added Resellers), distributors, and end-users. In this "after-market" environment, not only must the supplier's memory be comparable in every qualitative way with that of the OEM's CPUs, it also must be totally transparent to it. When a new workstation comes onto the market, our memory, for example, will be similar to that of the OEM--that is what customers expect. However, as the market begins to develop and assimilate the new system, we invariably find ourselves having to fill requests for enhancements rega rding speed, density, and other factors. This is the point when we are able to exercise more creativity. We can design-in faster, higher density chips, design memory with a larger or smaller footprint, with various form factors, and make almost any kind of customizing within the limits of the original design.

Although we have stressed the after-market in our discussion, on occasion, however, if an OEM is unable to get the required memory he needs fast enough in order to meet his own time-to-market demands, he will call on a third party memory supplier that specializes in quick turn-around to provide what he needs. This type of situation, obviously, allows the memory supplier the advantage of being "spec'd-in" to the basic product design. This also allows the memory supplier an opportunity to produce variations to the original design, almost from the time the product is introduced to the market.

The availability of memory chips can also influence not only the after-market, but also the OEM's supply chain. Any number of factors influence this chip availability, as we have recently observed. Certainly, the Taiwan earthquake will have an effect, although it should not be long lasting. Other influences include the Intel-Rambus shortfall and seasonal factors, which are expected to receive greater attention during the next several months.

How Resellers Can Obtain Additional Benefits

Other benefits for the reseller when dealing directly with a memory supplier is the fact that he does not have to tie up money with a large inventory. This allows him greater business flexibility. Pricing, also, is less than what similar memory would cost if acquired directly from the OEM. For comparable memory, the bottom line is that a reseller will be able to realize a greater profit margin, often 20, 30, and even 50% more. He will also benefit from guaranteed 100% compatibility, quicker delivery, a lifetime warranty (vs. an OEM's one-year maximum warranty) and fast, totally responsive support. Although it happens very infrequently, when an end-user narrows down a problem to memory, he can simply telephone the supplier and receive almost instantaneous, knowledgeable answers--or a replacement (or enhanced) memory module. However, as we know, once a memory is designed and built, it lasts virtually forever. Memory suppliers really do not anticipate replacement problems. Dealing with a memory supplier is cost -free for the reseller or distributor and very productive for the end-user.

While the OEM might have been "locked-in" to one particular DRAM memory, most suppliers will be able to offer resellers and end-users comparable sources and even more options. One should remember that memory is viewed as a very straightforward product, particularly by high-end workstation users. There is no mystery; they usually understand it completely. They are also fully aware that as a bare minimum, a memory supplier will be able to offer everything provided by the OEM.

After-Market Memory Can Be Superior To The Original

Today, however, most end-users understand that reputable suppliers are able to improve on the OEM's base designs with upgrades. The supplier can enhance the OEM's design with faster, higher density chips. Remember, by the time an OEM's workstation gets to market, his memory design (which was probably created at the same time as his overall system) might be more than a year old. This gives an enterprising memory supplier an excellent opportunity not only to meet, but also exceed the original design requirements. In addition, while the OEM is concerned not only with memory, but also with disk drives, software, and other system items, a memory supplier with a single, narrow focus can apply the very latest technology, i.e., the use of chips that were unavailable to the OEM, the latest generation of DRAMs that enhance capacity, etc. For example, Camintonn Corporation offers memory upgrades for HP's B, C and J class VISUALIZE UNIX workstations, which range from 256MB to a maximum of 4GB and dramatically enhance pe rformance for intense computing, graphics modeling, and CAD design applications.