Microsoft Launches New Servers For Small Companies

Microsoft yesterday launched a new range of server systems for small companies, scaling down its existing offerings to attack one of the fastest-growing segments of the business computing market. The world’s largest software company is launching into the market for small companies as competitors introduce cheap, open-source alternatives to its relatively costly Windows-based servers, and the use of pirated Windows products proliferates.

Microsoft’s new product line, called Windows Server 2008 Foundation, can accommodate up to 15 users and will cost less than $1,000 for the hardware and software combined, the company said. A server is essentially a powerful computer that provides services to other computers. A doctor’s office, for example, might use a server to allow staff to share files, access the same systems or maintain a website.

Analysts reckon the low-end server market for products costing less than $1,000 has grown four times faster than any other price range for comparable single processor servers. Microsoft’s new offering is a stripped down version of its Windows Server family of products, which tend to be beyond the price range of small businesses.

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Microsoft said Windows Server 2008 Foundation software will be sold already installed on machines sold by computer makers such as Acer, Dell, Hewlett-Packard and IBM. The computer makers will set the prices for their products, which may vary by country. (Reuters)