Losses vs not profitable enough

By: dmcq (dmcq.delete@this.fano.co.uk), August 1, 2022 11:50 am
Room: Moderated Discussions
Mark Roulo (nothanks.delete@this.xxx.com) on August 1, 2022 10:15 am wrote:
> Gionatan Danti (g.danti.delete@this.assyoma.it) on August 1, 2022 6:07 am wrote:
> > Adrian (a.delete@this.acm.org) on August 1, 2022 2:15 am wrote:
> > > AFAIK, Intel has never given any information about the materials used.
> >
> > I doubt that material availability or production difficulty were
> > the main motivations after Intel's decision to cancel Optane.
> >
> > From a technical standpoint, even relatively low capacity 3DXPoint can be very useful for non-volatile
> > read or write cache (ie: think using it for storing incoming writes on HDD or SSD).
> >
> > I suppose Intel's decision roots in the fatal reason for many products cancellation: lower
> > than expected margins. It seems a recurring problem for Intel, destroying many products
> > which, albeit very profitable, show less margins than high-priced server CPU.
>
> I think the problem was more "ongoing losses" rather than "profitable, but not enough."
>
> From Tom's Hardware early this year
>
>
Intel's Optane Business Haemorrhaged Over Half a Billion Dollars in 2020
>
> By Mark Tyson published February 07, 2022
>
> Sales were even weaker in 2021. Calculations suggest another $500 million loss occured.

>
> I can also imagine that management doesn't see a path to profitability.
>
> If you are losing money on a product and can't see a way to
> make that product profitable it makes sense to get out.
>
> This isn't the same thing as getting out of a profitable business that
> you don't like because it is too small or not profitable *enough*.

Micron would have gone ahead with it if they thought it could be made profitable.
I think possibly Intel just went through a phase of overestimsting their ability to get things working. After all they did the same thing almost with 14nm where they overestimated their ability to get new ideas working in a reasonable timeframe.
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TopicPosted ByDate
RIP Optane/XPointWes Felter2022/07/28 07:53 PM
  RIP Optane/XPointRayla2022/07/28 08:28 PM
  RIP Optane/XPointDoug S2022/07/28 09:00 PM
    RIP Optane/XPointNoSpammer2022/07/29 01:50 AM
    NVDIMM-NEric L2022/07/29 03:36 AM
    RIP Optane/XPointMichael S2022/07/29 04:02 AM
      RIP Optane/XPointDoug S2022/07/29 10:40 AM
        RIP Optane/XPointDoug S2022/07/29 10:43 AM
          RIP Optane/XPointLinus Torvalds2022/07/29 11:20 AM
            RIP Optane/XPointDavid Hess2022/07/29 08:59 PM
              RIP Optane/XPointDavid Hess2022/07/30 03:44 PM
                RIP Optane/XPointDoug S2022/07/30 10:43 PM
                  RIP Optane/XPointrwessel2022/07/31 05:33 AM
                  RIP Optane/XPointKonrad Schwarz2022/08/02 08:06 AM
                  RIP Optane/XPointDavid Hess2022/08/02 10:24 PM
                    RIP Optane/XPointDavid Hess2022/08/02 10:26 PM
                    RIP Optane/XPointAdrian2022/08/03 01:19 AM
        RIP Optane/XPointanonymou52022/07/29 12:50 PM
    RIP Optane/XPointGionatan Danti2022/07/29 09:09 AM
    RIP Optane/XPointMark Roulo2022/07/29 10:02 AM
      RIP Optane/XPointdmcq2022/07/30 03:42 AM
      RIP Optane/XPointanon32022/07/31 10:19 PM
        RIP Optane/XPointanon22022/07/31 10:55 PM
          RIP Optane/XPointDoug S2022/08/01 08:37 AM
            RIP Optane/XPointGionatan Danti2022/08/01 01:33 PM
              RIP Optane/XPointNoSpammer2022/08/02 03:50 AM
                RIP Optane/XPointDoug S2022/08/02 09:24 AM
                  RIP Optane/XPointGionatan Danti2022/08/02 10:34 AM
                  RIP Optane/XPoint---2022/08/02 10:39 AM
            RIP Optane/XPointDavid Hess2022/08/03 03:48 AM
              RIP Optane/XPointMichael S2022/08/03 06:04 AM
                RIP Optane/XPointDavid Hess2022/08/03 08:56 AM
        RIP Optane/XPointAdrian2022/08/01 02:15 AM
          RIP Optane/XPointGionatan Danti2022/08/01 06:07 AM
            Losses vs not profitable enoughMark Roulo2022/08/01 10:15 AM
              Losses vs not profitable enoughdmcq2022/08/01 11:50 AM
                Losses vs not profitable enoughGionatan Danti2022/08/01 12:34 PM
            RIP Optane/XPointMichael S2022/08/01 02:47 PM
              RIP Optane/XPointAnon2022/08/01 03:09 PM
                RIP Optane/XPointMichael S2022/08/01 03:32 PM
      RIP Optane/XPointGroo2022/08/01 12:28 PM
        RIP Optane/XPointanon32022/08/01 10:33 PM
          RIP Optane/XPointGroo2022/08/03 11:15 AM
            RIP Optane/XPoint---2022/08/03 03:05 PM
    LatencyDavid Kanter2022/07/29 06:35 PM
  Operating system and driver overheadEric L2022/07/29 03:44 AM
    Operating system and driver overheadLinus Torvalds2022/07/29 10:45 AM
  altrernatives?Michael S2022/07/29 05:17 AM
    altrernatives?Rayla2022/07/29 06:49 AM
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