I didn’t actually comprehend that INFN was sort of a razor/razorblade model until I read an excellent post by on one of the MF Infinera boards by TMF Edyboom. INFN has been selling these large razors (network boxes of some sort) which are pretty empty at first with perhaps one or two slots out of ten being used (thus they have lots of unused potential capacity), and as internet bandwidth continues to explode they will sell the razorblades (“line cards”) at high margin and low sales cost to fill up those razors. Up til now they’ve just been concentrating on selling the razors to build out their base for the long term. Sounds like a good strategy to me.
Saul
