Microsoft Runs Cannibalization Risk with Low-End Server Push
Windows Server 2008 Foundation Edition, a low-end version of the server operating system, will ship installed on servers that cost as little as US$500. But Microsoft isn't worried.
Just as netbooks carved out a new market from latent user demand for inexpensive laptops, Windows Server 2008 Foundation is meant to meet growing demand for low-cost servers and find new customers among small business that aren't yet using the software.
Some of those users that Microsoft hopes will buy Windows Server 2008 Foundation servers may have never used more than a single PC in their business, while others might use inexpensive Linux-based servers. Microsoft is hoping that a combination of low price, driver support for a wide range of devices, and a large number of available applications will win over potential customers, Hilf said.
Microsoft
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