The Attributes of a Closed Architecture:

1.                  A rising introductory cost structure over decades.

2.                  An abnormally long premium price structure

3.                  Supply shortages

4.                  Misaligned Market Development Funding

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A rising introductory-cost structure over decades:
Open Architecture components such as, Hard Drives, Monitors and RAM have gone from being the most expensive component ($1,000’s) in the early PC’s to that of a mere hundreds for the now top of the line.  Meanwhile the early microprocessor costs started around $100 dollars and are now approaching $1,000. Don’t be fooled into thinking, tremendous development, just look at the other open architecture components and you can see equal if not stronger development with declining introductory cost structures.

The slope of the introductory cost line is one indicator between a closed or open archtiecture.

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Abnormal premium price structure:
The ascending introductory cost line is the building mechanism for the exhorbinant premium price structure. All components/manufacturers have a premium price schedule. In an open architecture the premium price schedule is built from a descending introductory cost line and can be measured in months, IE. Hard Drives, RAM, Monitors. In a closed architecture wherein the premium price schedule is built from the ascending introdcutory cost line the premium price structure can be measured in years.

Supply Shortages:

Well documented over decades. Here we look at google search results and only document the top PC manufacturers relating to the microprocessor. If the top PC manufacturers are being shorted you can imagine the situation for the 1,000’s of others. This results in the stripping of significant manufacturing resources from our global infrastructure.

Intel's past disdain for customers--particularly its sole-source strategy that fostered shortages of the 386 several years ago--has left a bitter aftertaste. ''I would pay more to get an equal-performance microprocessor from anyone else,'' declares an irritated buyer for one PC maker.
Business Week 1992 - 04 -07

1998-12-15 Shortage of 350 MHz PIIs spread

to 450 MHz parts: The Domino effect is at work.

The Register

P4 shortages threaten Dell profits
Intel shortages get worse

By Mike Magee: Wednesday 14 November 2001, 09:23

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Pentium 4 shortages to worsen for Tier 1
Will Q1- 2002 ease the shortage pain?

By Mike Magee: Wednesday 12 December 2001, 15:26


Intel sees demand, spot shortages, for chips

August 22, 2003    EE Times

New supplies due in October

News Story by Dan Nystedt

SEPTEMBER 21, 2005

A shortage of Intel Corp. chip sets has crimped PC sales during the third quarter, but more chip sets from other suppliers should ease the shortfall in October, the world's largest maker of computer motherboards Asustek Computer said today.

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Misaligned Market Development Funds (MDF):

In an open architecture MDF resources flow most closely to the point of procurement and competing for end-user business. It can be seen in numerous open architecture components that this end-user alignment brings the greatest value to our global infrastructure. In a closed archtiecture the MDF flow has greater lattitude in its functionality.

Here we can see claims of MDF being used to negatively influence partner realtionships:

See AMD vs. Intel Lawsuit

However that is just one aspect of the expanded functionality. Exhorbinant branding is another, exhorbinat in this case meaning not the normal branding aspects you we see from open architecture components.

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Closed Architecture Initiatives:

I won't waste our valuable time here but to state:

In a closed architecture there is a greater propensity for closed architecture initiatives to be attempted, gain support, and become successful to the detriment of your enterprise and our global infrastructure. Although our description here is brief, closed architecture initiatives represents the greatest capacity for poor global performance.
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In closing, the microprocessor exhibits several significant attributres of a closed architecture. And, not just for your Fortune 500 enterprise but to a much greater degree our entire global infrastructure.