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Sun's Refresh Service: An Interesting New Business Model for Selling Servers

I read about Sun's newly launched refresh service on CNet. For a monthly subscription fee throughout a 42-month term, Sun will give you at least 3 upgrades to the latest hardware.

On its website, Sun argues that server performance and power efficiency improve at a rate of 40%+ annually. Old machines incur needless expenses in power, cooling and data center space. Instead, why not fight server sprawl and take full advantage of the innovation curve - automatically?

According to the refresh service brochure, the $23,000/month subscription fee is half the price of a traditional hardware lease - if (and this is a *BIG* if) you upgrade your gear three times over 3.5 years. This is such a clever approach. It gives Sun a guaranteed install base for hardware that hasn't even been developed!

So, let's think about whether this concept could work in web hosting. Do you think there's a market for an "early adopters" program where customers pay a month subscription fee for immediate access to the latest and great machine you get from Dell?

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