Microsoft adds Windows version for cheap servers
Microsoft announced a new server for small businesses, though one should not confuse it with a new version of the company's Small Business Server product.
The latter is a bundle of Windows Server and Exchange, among other things, for businesses with 50 or fewer people while the new product, Windows Server 2008 Foundation, is only the operating system and is aimed at single-processor servers with fewer than 15 users.
The new Windows version is Microsoft's answer to the server equivalent of Netbooks, ultra-low cost servers aimed at the smallest of businesses. The product will only be sold preinstalled on new machines.
CEO Steve Ballmer mentioned the product was coming and outlined the rationale at a meeting with financial analysts in February.
"From a revenue perspective, we are introducing a new low cost, low price, low functionality Windows server (version)," he said. "If you take a look at it, as server prices, hardware prices have come down, we don't exactly have a Netbook phenomenon, but if somebody can buy a $500 server, they're a little loathe to spend $500 for the server operating system that goes with it. So we have something that's akin to Netbook at the server level, and we'll be introducing our Foundation edition over the next month or two."
Microsoft also said that, through the end of September, it will donate a portion of its revenue from Windows Server Foundation to TechSoup.org and Telecentre.org, two groups that help bring technology to nonprofit organizations.
"We see this as an opportunity not only to deliver a technical foundation for business growth, but also to create a financial foundation for community," Ballmer said in a statement on Wednesday.
During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina. 
Maybe Lauren asked about getting a cheap server ;)
And the 64-bit requirement has been known (and coming) for years on the server end.
If you build a small business that grows from 15 users to 75 and you can't afford a copy of Small Business Server, you'd better stop hiring ASAP because you're already broke.
Seriously, how is this any different than buying a site license, then expanding it as needed, or buying 15 copies of MS Office, then buying more when you start hiring more people? pay as you go, pay as you grow. This is smart. MS hasn't raised their prices, they've lowered the point of entry for small businesses and you find a reason to complain.
Are you really naive enough to think MS should sell you a sub-$1,000 product that can scale as well as their enterprise class products? If so, don't worry about that 15 user limit. With your business chops, you'll never reach it!
-Mister Winky
If your business sense tells you to keep buying when there are alternatives that give you the software for free and just ask that you buy support as needed then you really should take a long hard look at yourself and realize that's one more person who doesn't have a job because you had to buy a Windows License instead of using Linux.
IBM Lotus Foundations is already there as a Linux Server. Here's a link. Educate yourself. http://www-01.ibm.com/software/lotus/products/foundations/offer/
During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft.
This is in the tagline following every article.
Ina, the comment system is messed up at CNET. It takes forever to load and I hate that stupid Facebook authentication thing that loads with it. Facebook is a social network crap, keep it away from all things humanity, please.
http://www.dell.com/content/topics/segtopic.aspx/dell-deals-servers?c=us&cs=04&l=en&s=bsd
Remember, we're talking about very small businesses. Really, you can get away with a fairly small amount of processor and RAM to run just Server services. A little extra HD space is fairly cheap. I'm seeing a Dell PowerEdge T100 with Dual-Core Pentium Processor, 2 GB RAM, and 500 GB HD for $349.
I wouldn't want to have to actually use the interface very often because I'm sure it would be molasses but for basic server functionality it would be more than sufficient.
So the $500 price is very doable.
Plus they are getting easier and easier to manage/configure/use and run on even older software. I have a perfectly good file and web server running on a P3 1.0 GHz system and a firewall/router/content filter system on a P3 700Mhz. Plus I was able to fool around with thin clients to determine if they will work for me and where they fall short without having to pay a licensing fee.
CentOS (a Red Hat clone), openSUSE and Ubuntu are all good server Linux distributions and worth a look.
Also, you're forgetting about the value of warranty support to companies who just want things to run. What does a small business do when their 8 year old P3-based computer crashes? Who will fix it? Should they fix it? Is 24x7 on site support available? Did they have everything backup using a simple wizard they can run themselves?
Whether or not it appeasl to you, it's very easy for a small business to buying a sub-$1,000 Windows server and Windows PCs from Dell with warranties and online backups included, and Dell/Microsoft offer deployment support if necessary. I imagine this release will also use a lot of wizards like Windows Home Server so usres can manage file systems, Active Directory and backups without knowing that's what they're doing.
-Mister Winky
It's a service and support situation. Companies this sized don't have a dedicated IT person.
I'm currently a college student and one of my certificates I can earn at the end of this spring semester is my RHCE. I have to pay $250 just to take it (like $400 outside of the school). I won't work minimum wage doing some of those tasks. Why? Because I spent an entire semester learning from basics (chmod, adding users, groups) to the advanced (setting up a server, bind, NIS, etc).
But you really couldn't get someone in there for nothing "just to fool around".
They may even be able to set up a thin client setup specifically tailored to what you want to do without you having to call in the outside consultants to do it for you.
Or you could pay for support from Canonical, get them to help you set up your server in whatever way you need it, make sure it's stable and updating properly and then just let it run. Pay them when you need it, don't pay otherwise. No licensing fees for the software ever. Ubuntu will even have support for cloud based infrastructure in the newest release (not something that's part of this new MS "offering").
Tell me again how you need to have a Linux geek in your IT staff because there's nobody to support it.
You're all over the map trying to make Linux look the solution to every small business problem when it's still a fractured affair.
If a small business buys a Windows 2008 Foundations server from Dell or HP, they have a hardware vendor and Microsoft backing them 24x7 and they can find HUNDREDS of local companies who can assist with setup and support as needed.
Linux?
First you say Linux is free -- Sure, the software is, but not the support. Most people have no idea how to setup and configure a mainstream Linux server like RHEL or SUSE. Those are not viable options for small businesses without regular IT support. Plumbers don't want to figure out Samba and Apache.
Ok, so maybe you go with Ubuntu. Which major server vendor sells Ubuntu servers? None that I can think of. Dell, for one, passed on the idea. OK, so now you have to cobble together support from two vendors, maybe Dell and Canonical, because you're not going to find near as many companies who provide local, mainstream Ubuntu Server support. How long do you think Canonical can stay in business while remaining unprofitable? By their own admission, they're 3-5 years away from being able to stahnd on their own. That's a risk in the current economic environment. http://blog.internetnews.com/skerner/2008/10/canonical-is-not-cash-flow-pos.html
So, you try IBM Lotus Foundations. Sure, it looks impressive, but what if you need support? Again, this product is far from mainstream. If IBM offers 24x7 support, I'm sure it's not cheap. And don't try to sell me on this self-healing bit -- no OS can run forever without some care, feeding and, likely, troubleshooting.
So, yes, a company who buys a $1,000 server might be able to save the $200 or so on that server which goes to Microsoft by trying Linux, but at what cost? Like it or not, Windows is a de facto standard that most people who have used a computer are familiar with. And if you have Windows desktops, using a Windows server almost guarantees you that you have the fewest problems. Tying to integrate Windows desktops into an AD-like Linux substitute is a chore -- believe me, I've done it.
Stop thinking like a geek or a religious zealot and you'll see that there's no good reason for companies to avoid Windows-based server solutions that JUST WORK, especially at this price point. To switch awa from the mainstream, what is known to work, you need a compelling reason and in this case, there isn't one.
-Mister Winky
You could hire out for a service, but you also run into confidentiality issues, ISO practices, and other problems when you allow a third party to manage your system and customer information for you.
It's a tricky situation. Turn key solutions typically are a better option for most companies.
IBM Lotus Foundations. It's a turnkey Linux based solution coming from a major corporation. Not Linux geek necessary to set it up for you.
And yes, I'm posting this link every time someone posts nonsense. It's time you got educated.
UPGRADES people. Watch out. Don't be foolish with your money.
If you start with Linux, it will scale to any size.
Granted Linux is getting easier to use, but how many applications can you find out there (with support) for a Dental office or a plumber or any small store. Not saying it's not available because the beauty of Open Source is if it's not available, build it yourself. But we are talking about non-technical users here who have never ever seen a "Command Prompt" in Windows. All they care about is give me an application which is all setup for them and similar to what they have been using so far. Change is NOT good for mom & pop stores especially when you are risking your own money and your budget is tight as compared to big corporations and you don't know the outcome.
Secondly, the most essential applications, yes I am referring to Word and Excel are on Windows. Yes I know there's OpenOffice or Lotus or iWorks or Office for Mac. But all of them have to claim they are "compatible with Word and Excel". Name one application that Microsoft has to claim it's compatible with eventhough a Word doc can be opened in OpenOffice.
I think this is a great move by Microsoft and perfect timing to launch a lower end Server. At the end, regardless of how good OS X or Linux are, it's things like these and how Microsoft markets, Windows will remain #1 at least for the next decade or until Google comes up with Android OS for computers because Google is the only company that can fight Microsoft on price, marketing, functionality and third party development.
The move by Microsoft is playing catch up with IBM Lotus Foundations. I've posted the link a few times. Go check it out then tell me MS is "innovating".
Also the hardware prices for such a machine could be well under $500 easily unless you start adding legitimate quality hardware RAID (not chipset integrated hybrid RAID).
Intel is coming out with a dual core N270 or N280 now Atom processor which will run about $50-60 and the associated board could be an ITX form factor.
Unless you are running apps on the server all your CPU is doing is essentially controlling I/O.
I hesitate to say this but in the last month or so Steve "Look out for the chair!" Ballmer is starting to come around. I actually like some of the initiatives he is working of late.
No matter how good Linux is, talk to any avg. Joe and Windows will always be easier to them than Linux. And that's because they have seen how Windows looks like but they don't know anything about Linux (unless they are tech savvy or have been reading articles). The only way to change that is through effective marketing and education and for that you need $$$ which Microsoft has far more than all Linux vendors.
Besides, Linux vendors are more concerned with Enterprise users because they make money through Support and not through Sales, which eliminates your mom & pop stores.
Another reason, how many vendors actually sell Linux and have it labelled right on the front door or the homepage on their website. DELL and HP both sell Linux but on their website "DELL/HP recommend Windows VIsta". In terms of stores, I see commercials for BestBuy, Frys, Staples, Office Depot but never seen anything about them selling Linux unless I actually walk over to the Store and specifically ask for Linux. Windows is everywhere.
At the end of the day, Windows is the ONLY OS marketed to consumers, education, mom & pop stores, small business, mid-size, enterprise, Govt, non-profit, and consumer electronics (PDA, Smartphones...). Reason is very simple, people have been using Windows since childhood so there is no learning curve as compared to Linux or Mac for that matter.
Not everyone uses Linux or Mac, but everyone at one point of the other WILL use Windows.
"everyone at one point of the other WILL use Windows"
Is that a threat?
- by d.gallea April 2, 2009 1:21 PM PDT
- I wonder if MS will migrate Wndows Home Server from 2008 to the new 2008 platform?
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