Question-and-Answer Session
Operator
(Operator instructions) And we do have a question today from Brian Freed, Morgan Keegan.
Brian Freed – Morgan Keegan
Good afternoon. Thanks for taking my call. A couple of quick questions primarily related to the IBM opportunities. With the xSeries design win rolling off and the blade server design win from the Aristos Logic acquisition coming on, can you give us some sense what you think is the relative magnitude of those design wins? Do you feel like the blade server opportunity is comparable in size or is it significantly smaller?
Sundi Sundaresh
On a relative basis, the blade server opportunity is smaller than the System x opportunities that is just driven by its volume; if you look at IDC, data blade servers has low unit volumes than rack and pedestal servers. That said, the ASPs on one tend to be a little higher than the others. So on a relative basis, blades will drive lower revenue than the System x.
Brian Freed – Morgan Keegan
Okay, so in terms of the ASP per system, does it tend to be higher on the blade servers than the System x or lower?
Sundi Sundaresh
Could you repeat that question, Brian?
Brian Freed – Morgan Keegan
In terns of the revenue contribution on a blade server versus the System x pedestal servers, is the contribution higher or lower on a per unit basis?
Mary Dotz
Actually, let me think about that. I'm not quite sure exactly on – in terms of, if you're talking about contribution but –
Brian Freed – Morgan Keegan
Yes, I guess, is the opportunity per server higher in dollar value for you guys with the Aristos product given the greater complexity than say the current x series product or is it – I'm just trying to pick up kind of relative ASP.
Sundi Sundaresh
Okay. I got it. I understand the question better now. The opportunity per server is higher.
Brian Freed – Morgan Keegan
Okay.
Sundi Sundaresh
Okay.
Brian Freed – Morgan Keegan
And secondly, Aristos obviously gives you some opportunity to attack some of the external storage and potentially the mass market with this technology, do you see it as a pretty significant opportunity for your long-time, longer term to go down that avenue?
Sundi Sundaresh
We definitely see an opportunity in design wins with external storage system vendors and we are pursuing opportunities and working with some as we speak and when the time is appropriate we will announce them.
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