Atlantic Computer is developing the Tronn server with PESA software for the basic server market. The Tronn with PESA is expected to perform 2-4 times better than competitors like Ontario Zink servers. It is targeted at the small and medium enterprise market focusing on web hosting and file sharing. The Tronn is being developed specifically for the US market where demand for basic servers is expected to reach 50,000 units in 2001 growing at 36% annually through 2003. Bundling the Tronn server with the PESA software provides customers benefits of higher performance at lower operating costs compared to cost-based pricing without PESA.

1. Atlantic Computer
01 Arif Hadianto (29118393)
02 Ahmad Supriadi (29118322)
03 Farhan Soeprapto (29118351)
04 Haris Wiyono (29118372)

2. Atlantic Computer Background
convervative two time performance than ONTARIO Zink
ideal for customer in file sharing & Web Server
aggresively four times performances than ONTARIO Zink
Atlantic
entering
Basic
Server
Tronn + PESA Software
1 2 3

3. Target Market Atlantic Computer
in Basic Server
In high performance server market,
Atlantic computer has Radia brand
1 Tronn with pesa perform equivalent 2-4
competitors server performance (Ontario - Zink)
The Tronn was develop specifically for
the emerging US Market
The basic server demand about 50,000 units in 2001, and
growth compound 36% annual through 2003
Product competitive advantage: consumers getting benefit from the
initial purchase, low cost of operations: electricity, application license
SME focusing in
web hosting &
file sharing
TARGET MARKET

4. COMPETITION BASED PRICE &
COST PLUS BASE PRICE
competition based price
conservative
$ 3,400
1 tronn with Pesa = 2 x basic server, 2 x$1700.
cost plus plus pricing
expected sales
year % quantity sales
2001 4% 50000 2000 unit
2002 9% 70000 6300 unit
2003 14% 92000 12880 unit
total sales 21180 unit
expected Pesa Instalations 50% 10590 unit
Pesa Cost R&D $ 2,000,000
Pesa Cost Per unit $ 189
Tronn cost production $ 1,538
Total Cost Tronn + Pesa $ 1,727
target profit 30% $ 518
price 1 unit Tronn Server + Pesa $ 2,245

5. COMPARATION ANTLANTIC
BUNDLING PRICE OPTION
Option Sales
Exp
Price Total Sales Cost Server Cost PESA Total Cost Profit
Bundling price-
competition
based pricing
21,180 $3,400 $72,012,000 $32,574,840 $2,000,000 $34,574,840 $37,437,160
Cost plus pricing
+ PESA cost
21,180 $2,245 $47,549,100 $32,574,840 $0 $32,574,840 $14,974,260
Benefit (Exibit 2):
With PESA file sharing (share storage & data
backup applications twice as fast compare with
Tronn without PESA
With PESA Web Server (running website, etc)
four time faster compare with Tronn Without
PESA