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> Still, a savvy eBay seller could flip the processors and RAM across the machines for around $700,000 (£550,000), making a hefty profit. > At a conservative e

> Still, a savvy eBay seller could flip the processors and RAM across the machines for around $700,000 (£550,000), making a hefty profit. > At a conservative estimate of $25 million for the array to be constructed, the auction sale is only 2% of the sticker price of Cheyenne. Honestly $480k sounds like a fair price. This is 8 year old hardware, in any reasonable depreciation scheme the book value is $0. If you just flip it you probably break about even, considering that prices are not going to be able to sell 8000 of those Xeon processors at their current market price. If you just want the compute, this supercomputer is equivalent to about $70000 in modern GPUs (assuming your compute needs fit the processing model of GPUs), so even with free power it's not terribly attractive to buy the system to run it yourself.

chomp 3y ago
I’m pretty sure you can’t just up and toss it on eBay like the article says, the supercomputer is subject to export controls.
bombcar 3y ago
You can’t flip the CPUs instantly, but if you’re a company that supplies older parts to people who need them, and can stock them on the shelf, you ought to be able to get most of the market value - eventually. I’ve paid for a motherboard of a off-lease hardware because even though it was about the price of a tune new off-lease server, it was simpler for me than rebuilding the OS for a newer piece of hardware. And data center equipment is so fast to swap even motherboards. If a CPU burned out in this I’d just get another.
- tengbretson 3y ago
  Yeah. There was a time back in like 2016-17 where i think it was Facebook that was decommissioning an old data center and that alone crashed the market for E5 v2 Xeons
  - defrost 3y ago
    Which raises the question, is there a blog | twitter account tracking datacentre decommissions | revamps with related hardware expected to be released to second market for people that want good deals on X year old then bleeding edge gear?
    - justsomehnguy 3y ago
      It's extremely regional. It would be better to invest on something what would track the things you need and notify you if the price drops or there is a surge in availability. And an anecdote to complement this: I have 1155 desktop PC with Pentium G2020 (2cores/2threads, ugh). I can fit almost anything Ivy/Sandy Bridge in the mobo, but... i7 3770 is still $300, while various refurb Xeons E3 v2 are $20-30. And the best part is what even if I buy something like 1270v2 (4c/8t, full eq for 3770) it would still be a more than a decade old system and it wouldn't improve the performance much.
      - bombcar 3y ago
        It’s exceptionally regional once it is full systems as they’re heavy as hell. Find a local scrapper and get in touch and you can often save tons by avoiding shipping.
      - omnimus 3y ago
        Years ago i went and looked for most powerful 1155 processor my old motherboard supported and i think it was i7 3770 - i bought it for 20usd. How it can be 300 now?
        yial 3y ago
        They’re not. I instantly see them for $50 on Amazon and $34.99 on eBay.
        justsomehnguy 3y ago
        I gave the price for a new one from the retailers (they somehow still have 1 or 2 of 1155 in stock). There are, of course refurb/secondhand 3770 out there, but... Just let me copy-paste one of the lots out there: $33 e3 1270 v2 SR0P6 3.5-3.9mhz tdp 69w = core i7 3770k $39 e3 1275 v2 SR0PA 3.5-3.9mhz tdp 77w = core i7 3770k with Intel HD Graphics P4000 $44 core i7 3770 SR0PK 3.4-3.9mhz tdp 77w $43 core i7 3770S SR0РN 3.1-3.9mhz tdр 65w
ip26 3y ago
$25 million also seems likely to have included labor, cooling, and possibly software and support, none of which are saleable capital assets.
mrandish 3y ago
> Still, a savvy eBay seller could flip the processors and RAM across the machines for around $700,000 Three (pretty big) caveats to add: * Any significant quantity of those CPUs and RAM sticks hitting the used market at once will depress the selling price. So they need to be sold over several years during which the baseline demand (and price) will continue to fall. * The sale contract had fairly onerous requirements about the professional personnel and methods of removal permitted, all of which will add to the buyer's upfront costs on top of transport, storage and sales costs. * Since there are known failed components in the lot, all the pulled parts will need to be tested or sold as-is. I'm surprised it got bids that high and I think the article implying the buyer got a steal is overblown.
- rasz 3y ago
  First caveat is even bigger. There already is a HUGE amount of those Xeons and ram modules on the market coming from China where old servers get scrapped, and market is not soaking them in. Nobody needs $18 ancient Xeons. You will never sell 10K of those CPUs in your life time, even if you lower price to $1 a pop.
  - justinclift 3y ago
    Wonder how much gold (etc) is in these chips then? Might be a case of actual recycling being the best course of action.
terribleperson 3y ago
Buying this supercomputer for 480k and parting it out for 700k doesn't sound profitable. The amount of labor involved in that sort of business is substantial, you have to store the whole thing while you do it, and you're going to crash the ebay market for those parts to boot. Unless the buyer already has buyers lined up for bulk purchases, I don't think parting it out would make any sense.

chomp 3y ago

I’m pretty sure you can’t just up and toss it on eBay like the article says, the supercomputer is subject to export controls.

bombcar 3y ago

You can’t flip the CPUs instantly, but if you’re a company that supplies older parts to people who need them, and can stock them on the shelf, you ought to be able to get most of the market value - eventually. I’ve paid for a motherboard of a off-lease hardware because even though it was about the price of a tune new off-lease server, it was simpler for me than rebuilding the OS for a newer piece of hardware. And data center equipment is so fast to swap even motherboards. If a CPU burned out in this I’d just get another.

tengbretson 3y ago
Yeah. There was a time back in like 2016-17 where i think it was Facebook that was decommissioning an old data center and that alone crashed the market for E5 v2 Xeons
- defrost 3y ago
  Which raises the question, is there a blog | twitter account tracking datacentre decommissions | revamps with related hardware expected to be released to second market for people that want good deals on X year old then bleeding edge gear?
  - justsomehnguy 3y ago
    It's extremely regional. It would be better to invest on something what would track the things you need and notify you if the price drops or there is a surge in availability. And an anecdote to complement this: I have 1155 desktop PC with Pentium G2020 (2cores/2threads, ugh). I can fit almost anything Ivy/Sandy Bridge in the mobo, but... i7 3770 is still $300, while various refurb Xeons E3 v2 are $20-30. And the best part is what even if I buy something like 1270v2 (4c/8t, full eq for 3770) it would still be a more than a decade old system and it wouldn't improve the performance much.
    - bombcar 3y ago
      It’s exceptionally regional once it is full systems as they’re heavy as hell. Find a local scrapper and get in touch and you can often save tons by avoiding shipping.
    - omnimus 3y ago
      Years ago i went and looked for most powerful 1155 processor my old motherboard supported and i think it was i7 3770 - i bought it for 20usd. How it can be 300 now?
      - yial 3y ago
        They’re not. I instantly see them for $50 on Amazon and $34.99 on eBay.
      - justsomehnguy 3y ago
        I gave the price for a new one from the retailers (they somehow still have 1 or 2 of 1155 in stock). There are, of course refurb/secondhand 3770 out there, but... Just let me copy-paste one of the lots out there: $33 e3 1270 v2 SR0P6 3.5-3.9mhz tdp 69w = core i7 3770k $39 e3 1275 v2 SR0PA 3.5-3.9mhz tdp 77w = core i7 3770k with Intel HD Graphics P4000 $44 core i7 3770 SR0PK 3.4-3.9mhz tdp 77w $43 core i7 3770S SR0РN 3.1-3.9mhz tdр 65w

ip26 3y ago

$25 million also seems likely to have included labor, cooling, and possibly software and support, none of which are saleable capital assets.

mrandish 3y ago

> Still, a savvy eBay seller could flip the processors and RAM across the machines for around $700,000 Three (pretty big) caveats to add: * Any significant quantity of those CPUs and RAM sticks hitting the used market at once will depress the selling price. So they need to be sold over several years during which the baseline demand (and price) will continue to fall. * The sale contract had fairly onerous requirements about the professional personnel and methods of removal permitted, all of which will add to the buyer's upfront costs on top of transport, storage and sales costs. * Since there are known failed components in the lot, all the pulled parts will need to be tested or sold as-is. I'm surprised it got bids that high and I think the article implying the buyer got a steal is overblown.

rasz 3y ago
First caveat is even bigger. There already is a HUGE amount of those Xeons and ram modules on the market coming from China where old servers get scrapped, and market is not soaking them in. Nobody needs $18 ancient Xeons. You will never sell 10K of those CPUs in your life time, even if you lower price to $1 a pop.
- justinclift 3y ago
  Wonder how much gold (etc) is in these chips then? Might be a case of actual recycling being the best course of action.

terribleperson 3y ago

Buying this supercomputer for 480k and parting it out for 700k doesn't sound profitable. The amount of labor involved in that sort of business is substantial, you have to store the whole thing while you do it, and you're going to crash the ebay market for those parts to boot. Unless the buyer already has buyers lined up for bulk purchases, I don't think parting it out would make any sense.