IBM drops price of high-end Windows

Daily Newsletters

Sign up to ZDNet UK's daily newsletter.

NEWS
IBM this week relaxed stringent requirements for running the highest-end version of its Windows server software, effectively lowering the overall price by 30 percent in some cases and potentially expanding the pool of interested customers.

To minimise crashes, Microsoft and server makers have tightly controlled Windows Server 2003 Datacenter Edition, a product geared for critical tasks that run on powerful machines with numerous processors. For example, hardware, software and storage choices were limited to a small number of certified configurations, and a customer had to purchase support services from the server maker.

Windows Server 2003 Datacenter Edition is designed for high-end multiprocessor servers running critical tasks. To enable the careful testing of quality and compatibility that's needed to cut down on crashes, Microsoft has permitted the operating system to be used only in conjunction with a short list of certified hardware and software, including network adapters and antivirus programs.

In addition, Microsoft has required that customers buy support contracts and that the systems be set up in advance by qualified server makers such as IBM and Unisys.

Now those constraints are being lifted, IBM confirmed this week. Among the changes: customers no longer must buy the support; IBM-certified hardware may be installed, not just the much shorter list of Datacenter-certified hardware; and customers or computer resellers now may build and install Datacenter servers on their own instead of ordering pre-built machines from IBM.

"The fact that this is happening suggests there is perhaps some growing demand from customers to get easier and cheaper access to that version of Windows, which at the end of the day can only be seen as a good thing for Microsoft," said Summit Strategies analyst Dwight Davis. "If Microsoft is able to sell more Datacenter editions and increase its presence in the enterprise, that's clearly a core strategic objective."

Microsoft has tried for years to spread Windows to high-end servers, a domain in which Unix systems and mainframes have long dominated. Despite Windows reliability and security problems, the balance of power is changing with the gradual maturing of Windows and the increasing horsepower of Intel-based servers.

The loosened Datacenter terms fixes a problem: customers sophisticated enough to run Datacenter servers were the ones who least needed extensive handholding, said Donn Bullock, senior brand manager for IBM's high-end EXA Intel servers. The previous terms quashed customer desires to move from eight-processor systems that Windows' Enterprise Edition can use to 16-processor or larger models that require Datacenter.

"The big hurdle is the big price jump going from Enterprise to Datacenter just to get the additional scalability," Bullock said. "They want to scale, but they don't want to be required to purchase the additional services that Microsoft is requiring them to buy."

But once support services are dropped, "Today's new Datacenter offering is roughly 30 percent less expensive than it was before," Bullock said. The move brings Datacenter prices nearer to IBM's lower-end sibling, Enterprise Edition, which is limited to eight-processor servers.

Microsoft wasn't shy about attaching a high price in 2002: It charged server makers $24,000 (£13,000) for each copy of Datacenter, according to NEC.

Microsoft declined to comment for this story.

Datacenter runs on several configurations of IBM's x445 server with as many as 32 Xeon processors and its x455 server with as many as 16 Itanium processors. On Tuesday, IBM added Datacenter support for new models using Intel's 2.7GHz and 3.0GHz Xeon processors and 1.4GHz and 1.5GHz Itanium 2 chips.

Windows is now reliable on higher-end multiprocessor systems, said Susan Whitney, who runs IBM's xSeries group for Intel-based servers, in an interview. And because Microsoft "substantially changed their pricing dynamics," more customers will get expertise in the area, she added.

Microsoft's perpetual foe, Linux, is also making its way into high-end servers. "We see a lot of Linux on eight-ways," Whitney said. "Linux on an eight-way is a nonevent."

Bullock said about 15 to 20 percent of IBM's eight-processor server use Linux, typically to run Oracle or DB2 databases and business software such as SAP's products.

Post your comment

In order to post a comment you need to be registered and logged in.

You can also log in with Facebook. Log in or create your ZDNet UK account below

  • Login

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy. Questions about membership? Find the answers in the Community FAQ

Get ZDNet UK's daily newsletter

Enter your email address to sign up

ZDNet UK Live

Freebies202

Duplicate comments are not made intentionally. Its very good to know that now you are keeping check on this problem because sometimes a commenter...

3 hours ago by Freebies202 on Microsoft fixes blog comments, speeds up blogs with open source
kevinmchapman

"the very significant number of users" and "many (most) of us" - you have no evidence for these statements. It is a fact that most users are saying...

11 hours ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
Marg Menzies Harrison

Another grammar faux pas is the improper use of "you". When sitting down down in a restaurant, for example, I get cringe when the waitress...

12 hours ago by Marg Menzies Harrison via Facebook on 10 flagrant grammar mistakes that make you look stupid
zdnetukuser

And NOW, folks, for Canonical's next trick... Kubuntu is late. Here's a pencil. Draw your own conclusions. cf.:...

13 hours ago by zdnetukuser on Linux Minterface
Moley

@kevinmchapman. The discussion here reflects the very significant number of users who really do like the traditional menu system and who wish to...

15 hours ago by Moley on A tale of two distros: Ubuntu and Linux Mint
kevinmchapman

Er, no... It is an efficient means of finding the application/file/setting you need in one place. The icons are a simply a fallback for when you...

17 hours ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
TerryRK

Isn't the provision of a text based search an admission by the developers that the mass of icons approach does not work? I don't need to use a...

18 hours ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint
kevinmchapman

"Unity and GNOME 3 both abandon the old text-based cascading menus in favour of a graphical icon-driven system." Point truly missed. Both use a...

18 hours ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
TerryRK

whs001 - Thank you, I'm glad you liked the article. I absolutely agree with you on your first point. I should perhaps have made it clearer that...

18 hours ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint
Dennis Nilsson

If we allow corporate interest to dictate the way our government circumvents due process against foreign entities then we should accept the same...

20 hours ago by Dennis Nilsson via Facebook on ACTA stumbles in Germany
GHar123

I totally dislike pirating of works, I fear that artists will be deterred from creating works if they think that they are going to get ripped off....

21 hours ago by GHar123 on ACTA stumbles in Germany
JCB33

How dare film makers, artists or anybody that invests in creativity stop us pirating their works for free. I want to be able to walk into my local...

1 day ago by JCB33 on ACTA stumbles in Germany
Moley

@GrueMaster. I prefer horses for courses rather than one size fits all. I, and I suspect most other computer users, do not really wish to have...

1 day ago by Moley on A tale of two distros: Ubuntu and Linux Mint
greycynic

The product that scares me every time I have to use it is the Office 2007 version of Excel. The first bug that I found was applying the median...

1 day ago by greycynic on Ten flawed products that derail productivity
GrueMaster

Nice review and very informative. One thing I'd like to add (in reply to whs001's 1st question), the main reason to have the same interface from...

1 day ago by GrueMaster on A tale of two distros: Ubuntu and Linux Mint
Frederick Wrigley

I'be been using Mint 12 since the RC came out, and I am far more happy with the Cinnamon, the Mate, and, yes (with extensions), theGnome 3...

1 day ago by Frederick Wrigley via Facebook on A tale of two distros: Ubuntu and Linux Mint
bdantas

Excellent article. One small correction, though--although a fresh installation of Linux Mint 12 will, indeed, provide the user with a version of...

1 day ago by bdantas on A tale of two distros: Ubuntu and Linux Mint
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

1 day ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

1 day ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Moley

For Gnome 2 die-hards, it is possible to add icons to the bottom panel (or top top panel, if you prefer) which provide the exact Gnome 2...

1 day ago by Moley on A tale of two distros: Ubuntu and Linux Mint