Just so any VA LINUX Lovers here that loved there systems you can still get them here http://www.californiadigital.com

They took over VA Linux Hardware side.. hehe

I'm betting that, two years from now, VA Software will be bankrupt, and CDC will be making millions from the hardware business. ;)

Originally posted by cperciva
I'm betting that, two years from now, VA Software will be bankrupt, and CDC will be making millions from the hardware business. ;)

I hope not or 1,000's of Open Source projects will need to find a new home.

Frank

Originally posted by ffeingol
I hope not or 1,000's of Open Source projects will need to find a new home.

I'm sure some people around here will be able to help them out... for the right price. ;)

I hope they don't go under.. I have no idea why they wanted to stop makeing servers seems a little nuts to me.. I thohgt they were doing good.

Maybe thats why you can find VA Linux servers
pretty cheap! I didnt think they were doing that
poorly. Anyone know why they got out? $$?

-- Brad

I'm betting that, two years from now, VA Software will be bankrupt, and CDC will be making millions from the hardware business.Anyone know why they got out? The margins on hardware these days are razor thin and it's hard juggling act to keep a profit. I know 2 people who have had hardware/computer sales companies and have gone under because of companies like Dell and IBM can really play the game well.

It takes a lot of cash, good manangement and luck to make it in the hardware sales industry these days.

Originally posted by RackMy.com
The margins on hardware these days are razor thin

I'm not sure I agree with you there. For consumer hardware, certainly, but I don't think the same applies to server hardware. Building dense rackmount systems is still something of a black art, and dealing reliably with cooling issues is not trivial. A company which has a reputation for building reliable servers can easily charge a 50% premium... as VA LINUX themselves demonstrated. Before they shut down, their high-end servers (ie $5000+) were far more expensive than the component costs; I'd have to guess that they were making a gross margin of at least $2000 per system for their expensive models.

The only reason VA LINUX was not making a profit already out of the hardware market was that they lacked sufficient volume to cover their fixed costs. This I blame primarily on the position linux evangelism took within the company: I know many people who would have been happy to buy servers from them, if only they could have had FreeBSD, OpenBSD, or Windows installed instead of linux.

as VA LINUX themselves demonstrated. Before they shut down, their high-end servers (ie $5000+) were far more expensive than the component costs; I'd have to guess that they were making a gross margin of at least $2000 per system for their expensive models.Very good point, but do you know how much R&D costs? It's very expensive. Plus you have to pay someone to put them together & test them. That all adds up very quickly! This is why most hardware/system integrators are suffering; razor thin margins and no volume. It's very sad, but hope things change or we will see more great companies go under.

Originally posted by RackMy.com
do you know how much R&D costs?

Thus my point about volume. VA LINUX had very high gross margins on their high-end servers, but because they restricted themselves to the linux market, they didn't have enough volume to offset their fixed costs.

#1 rule of business: Evangelism loses money. ;)