Well according to pricewatch you can get Win2kADV with 25 cal for less than $1k
That's very true. But, something tells me Dell is not shopping around on PriceWatch. So, I used Microsoft's price for the software.
2) You're listing the cheapest prices on pricewatch. I hardly doubt the built in Gigabit NICs are crappy quality. Also they have an extremely large premium for the best technology.
Right, I also doubt Dell is using the $20 Gigabit NIC from Wal-Mart. I simply picked the cheapest I saw for the hardware to make a point. Even the cheapest hardware ran your total up above $5000 (keeping in mind my reason for using Microsoft's Windows pricing).
1) Discriminative pricing. Usually businesses buy these things. Businesses can fork over more money, and usually they demand top tier support (no calls routed to India). The default warranty is 3 years.
Agreed here as well. Dell is not marketing these to "Average Joe User" they are marketed for big business who can afford to pay these prices. If Dell wasn't making money, they'd lower the price.
So you're saying that most of the cost is for software. Explain the linux based NAS box then ??
They cost roughly about the same !
I don't know much about Linux in terms of pricing (yes, I am aware you can get many distros for free) etc, but my guess (based on the fact they are using Windows 2000 Advanced Server) is that they are not using some free downloadable variant of Linux. They are probably using some Enterprise-level variant which, if I am not mistaken, still can cost significant amounts of money. Also considering that support prices might be higher for Linux than for Windows boxes (I could be wrong here).
I really think the bottom line here is that they cost so much because the target purchaser can afford, and is willing, to pay the price. Dell very likely provides premium services with these boxes as well, which also costs. If Dell wanted to sell these to us "Average" computer users, they'd lower the price. (Along with the specs and support options).
\Dan