Sun drops its prices

Sun drops its prices

Sun Microsystems has dropped its prices by 7.25 per cent across the board in response to a strengthening Australian dollar.

The vendor’s New Zealand customers will also see a price reduction across the board of 8.2 per cent, reflecting the strengthening of its local currency against the US dollar.

The price reductions were effective as of February 12.

Under the new scale, a Sun Fire V65x 2U rack server with a 2.8GHz CPU and 512MB memory which sold for $3840, now sells for $3560. A Sun Fire V250 server with two1.28GHz UltraSPARC IIIi processors and 2GB of memory that originally sold for $12,200, now costs $11,320. Sun said it would also reduce support services pricing on its volume server line by 10 per cent, from February 25 to July 31.

The vendor has been making several inroads into the volume market of late, releasing enterprise and desktop software on comparatively cheap subscription licensing models, as well as a swag of new low-price servers.

Sun recently released an AMD Opteron-based V20z server, the 1U rack mount version of which sells for $4665. A server with similar specifications from IBM (eServer 325) would cost $5680.

IBM is not mirroring Sun's actions.

"There is a combination of several factors that influence the pricing of IBM products, including product availability, market dynamics, customer needs, competitive activity and currency fluctuations," an IBM spokesperson said. "IBM constantly monitors these variables to ensure that its products remain competitively priced."

Stephen Bovis, HP Australia's director for Industry Standard Servers, said HP's goal is to equip its customers with an 'Adaptive Enterprise'.

"HP is committed to lowering the total cost of owning an IT investment, ensuring reliability, availability and reducing the costs of deployment and maintenance," he said.

According to Bovis, on a monthly basis, HP reviews pricing internationally, taking into account factors such as manufacturing costs and competitive environment.

"For our customers and resellers, the strengthening Australian dollar, coupled with HP's pricing strategy, has allowed them to experience a gradual reduction in cost," he said.

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