Printer Friendly

IBM ATTACKS SUN ON PRICE WITH MIDRANGE UNIX SERVERS.

(Reuters) - International Business Machines Corp. Has launched a new line of midrange server computers that steps up the price pressures on its archrival, Sun Microsystems Inc..

IBM said servers in its new p670 line, which is targeted at large and medium-sized companies, would cost up to 40 percent less than the equivalent offerings from Sun because they will use fewer computer chips.

"IBM has been getting more astute at Unix and it is launching products at prices that put its competitors in palpitations," said Charles King, an analyst with Sageza, a Silicon Valley-based market research firm.

Sun, which is also expected to launch a midrange server this week, has been fighting IBM on technology and pricing to capture share in the moribund market for servers running the Unix operating system.

Competition has heated up between Sun, IBM and the third major Unix vendor, Hewlett-Packard Co., as recession-wary corporations have frozen technology budgets, and analysts have given mixed signals about Sun's recent performance.

"You're seeing these cheaper midrange boxes because, despite the government's protestations (that the economy is rebounding), there is a reluctance amongst companies to spend too much money," King said.

The server line, which will ship on April 26, includes four computers ranging in price from $178,270 to $535,522, compared with Sun's equivalent range of $257,525 to $792,731 IBM said.

Analysts categorize servers roughly into three groups with high-end computers, costing more than $1 million, midrange computers that cost between $100,000 and $1 million, and low-end computers that cost less than $100,000.
COPYRIGHT 2002 Millin Publishing, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2002, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Comment:IBM ATTACKS SUN ON PRICE WITH MIDRANGE UNIX SERVERS.
Publication:EDP Weekly's IT Monitor
Article Type:Product Announcement
Geographic Code:1USA
Date:Apr 15, 2002
Words:259
Previous Article:INVIO UNVEILS NEW ENTERPRISE SOFTWARE FOR AUTOMATION OF NETWORKED STORAGE MANAGEMENT PRACTICES.
Next Article:EMACHINES INTROS NEW DESIGN FOR ENTIRE PC LINE.
Topics:


Related Articles
Only A Handful Of Server Vendors Cheered Their 1999 Revenue Results.
IBM INTRODUCES WORLD'S FASTEST MIDRANGE SERVER.
IBM LAUNCHES WORLD'S MOST POWERFUL SERVER.
SUN'S VENERABLE ENTERPRISE 10000 SERVER BEATS IBM'S FULLY CONFIGURED P690/HPC ON APP BENCHMARK.
Server consolidation: cost saving but what about security? (Security).
IBM takes top honors in VARBusiness annual report card survey.
Sun grows position in worldwide server market as undisputed UNIX server leader in Q203, and gains share in overall server market.

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters