IBM launches bargain-basement server family

 

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By Reuters

Posted on 5 Feb 2013 at 09:07

IBM is targeting competitors such as Oracle and HP by offering a more affordable Power Systems server and storage product range later this month.

The Power Systems Express family should ship later this month, the company said.

"Big data and cloud technologies that were once only affordable to large enterprises are now available to the masses," said Rod Adkins, a senior vice president in IBM's Systems & Technology Group.

The company said the budget new servers were based on its Power architecture with the Power Express 710 starting at $5,947.

IBM is serving notice to competitors, saying 'We are not giving up'

"The 710 is competitively priced [compared] to commodity hardware from Oracle and HP," IBM said, referring to Oracle's Sparc servers and HP's Itanium integrity servers.

"With these new systems, IBM is forging an aggressive expansion of its Power and Storage Systems business into small- and medium-sized businesses and growth markets," Adkins added.

Forrester Research analyst Rich Fichera said that while the product range would not "make or break IBM," it was a signal to competitors and customers alike that it intends to retain its significance in the market.

"IBM is serving notice to competitors, saying 'We are not giving up,' and by continuing to offer ever-improving performance to customers, it is making sure there's no temptation to switch," he said.

The product launches today, but IBM said it would not start delivering until February 20.