Build your own systems and save

The process of putting a system together from commodity parts is simpler than most people realize. Indeed, I think the only people who know how easy it is, and how cheap the good quality parts are, are the people who actually build their own systems. However, those who would never consider building a computer can learn plenty from knowing how they’re built, and how they got so affordable.

Building a PC, desktop or entry server requires no clean room, hair net, gloves, soldering irons, or special tools. All you need is a screwdriver and a set of pliers. It is not impossible to mess it up, but it’s nowhere near as difficult as changing your car’s oil. Considering the miniscule investment of time, expertise and cost — we went to reseller Newegg.com and got a complete set of desktop components for $260 — it’s hard to understand why PCs have cost so much for so long.

I didn’t get this until I began building my own machines for clients seven or eight years ago. Back then, components were only sold to manufacturers and computer repair shops through a handful of distributors. An important change occurred when 3-D video games hit the Intel PC market. Gamers wanted workstation-level graphics, smooth animation, and supercomputer-level behavioral simulation. The growth of their expectations rapidly exceeded system manufacturers’ ability to push new leading-edge systems out to market. So gamers started experimenting with building their own PCs. Impatient with the slow advance of PC performance, they overclocked processors to run faster than their rated speed, thereby dispelling the mystery that had buoyed desktop and entry server prices for so long.

It’s now practically impossible for vendors of Intel-based systems to justify higher prices for basic hardware by spouting claims of superior quality or unique technology. Realizing that all PCs are built from commodity parts, and that those very parts are available to individuals and small system builders at lower prices, takes the magic out of vendors’ nameplates. Many home-built servers have remained in continuous service for more than five years, dispelling the belief that non-commercial systems have shorter life spans. As a result, vendors now compete on the basis of convenience and quality of service.

No knowledge comes without pain. The unfortunate consequence of learning manufacturers’ secrets is that the market not only refuses to overpay for hardware, but customers won’t pay enough to sustain margins that keep vendors in business. The draining of profit from the mainstream low-end equipment market has taken a toll on the quality of vendors’ services to customers. Too bad, because service does differentiate one vendor from another. It’s clear that businesses need to foster self-reliance to counter the declining quality of vendor support.

An ironic twist is going to take the market for another wild ride. The very same crowd that made PC system and component prices so low Click for larger view. has now created a boutique market for trendy components. New AMD and Intel enthusiast-targeted processors are markedly more expensive than their top-performing predecessors. There are expensive chassis trimmed in neon and all-copper heat sinks that cost more than some CPUs.

Now that anybody can build a high performance computer, cheap machines are no longer hip. Given their proven influence, I’d say the enthusiasts are about to drive prices and margins back up.