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March 31, 2003 — (WEB HOST INDUSTRY REVIEW) — According to reports released on Friday, heated competition for the small and medium-sized enterprise (SME) server market has caused a continuing decrease in pricing among server manufacturers targeting that market.
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Facing pressure from Linux vendors, Microsoft is reportedly preparing to set a low price for the Web Edition of its upcoming Windows Server 2003. The single-purpose Web server, is designed for mid-sized companies that do not need powerful management features. The company plans to charge $399 for the Web Edition server, an effort to undercut Linux vendors. The software’s Standard Edition will carry a price tag of $999.
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Linux developer Red Hat has also introduced a new Linux server package, basic ES, which will sell at $349 per year, compared the $799 the company charges for the standard edition.
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Analysts say the new SME server packages place Windows and Linux in direct competition for the small and medium-sized enterprise market. Experts add that SME customers should not allow themselves to be seduced by price alone. There are a number of other considerations that should figure into the selection of server software, including support and total cost of ownership.
