HP has launched a server range designed to open new markets to its resellers, which have had to contend with the bargain basement prices of Dell and the white-box market.
The HP tc2110 server features an Intel Pentium 4 2GHz processor, up to 200GB of hard disk drive capacity and up to 1.5GB of memory. Two models are available, an IDE model and a SCSI model. The server is aimed at small businesses of up to 20 employees.
"SMEs want brand name recognition and reliability but at a budget," said Nicholas Lynch, HP's market development manager for industry standard servers. "We'd priced ourselves out of the small business market."
Lynch said the small business market is prepared to pay for a feature set and isn't interested in the higher-end management tools, but a desktop does not provide the optimisation they need to run a business.
"They just need it to be easy. This product is aimed at the peer-to-peer small business that is transitioning to a server but it is also versatile enough to be used as a workgroup server.
"It has all the features a small business needs in a server - it is optimised for operating systems such as Windows 2000, Novel and Linux and also includes error checking and correcting functionality."
As an introductory offer, HP is bundling the 2110 server with an 18GB hard drive, 256MB RAM and Microsoft Windows 2000 with five licences. The package would normally cost more than $4,500 but HP is taking $1,000 off the price for consumers. The vendor is also offering a $200 rebate to resellers until November.
"Margin pressure is really tight at the moment. This is a reason for resellers to try the product," Lynch said.
The HP tc2100 is available immediately through Tech Pacific, Ingram Micro, Digiland and eXeed, as well as newcomers Dicker Data and Express Data.