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IBM Launches Low-Cost Server Line to Compete with HP and Sun

Strategic Insights

— 1 min read

IBM has announced a new line of low-cost servers, called the System p5 Express, aimed at competing with Hewlett-Packard and Sun Microsystems. The new server line is based on IBM's Power5 chips and offers advanced features such as micro-partitioning, which allows users to divide one server into as many as 10 smaller systems. Prices for the new servers start at $3,750 and go up to over $37,000, with higher-priced systems boasting a quad-core architecture.

Key Takeaways:

  • The System p5 Express is a new line of low-cost servers from IBM, priced starting at $3,750 and going up to over $37,000.
  • The new server line is based on IBM's Power5 chips and offers advanced features such as micro-partitioning.
  • IBM's Power chips are RISC-based and have traditionally gone into more expensive servers, but the new line aims to compete with cheaper Intel-compatible servers.
  • The new servers will run Linux, which offers flexibility and cost savings for businesses.
  • The target market for the new servers is broad, including financial services, telecommunications, manufacturing, and other sectors that rely on Unix.
  • IBM previously credited its Power-based servers with fueling the current resurgence of Unix, and sales of Unix systems have risen slightly in recent quarters.

Statistics:

  • The new System p5 Express servers are priced starting at $3,750 and going up to over $37,000.
  • The higher-priced systems boast a quad-core architecture, which puts four processors on a single chip to handle many sets of tasks at once.
  • IBM credits its Power-based servers with fueling the current resurgence of Unix, with sales of Unix systems rising slightly in recent quarters.
  • According to research firm International Data Corp., IBM edged past HP and Sun in the second quarter this year in overall sales of Unix systems.
  • A similar study from Gartner for the same quarter puts Sun at a small but significant lead, with HP in the No. 2 spot and IBM in the No. 3 spot.

Sources:

  • IBM: No date provided.
  • Jeff Howard, IBM's vice president of product marketing for Power-based servers: No date provided.
  • International Data Corp: "IBM Edges Past HP and Sun in Unix Sales"
  • Gartner: "Unix Sales: No title provided"

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