HP lowers prices for Unix servers

on C|Net reads that Hewlett Packard has cut prices for its mid-range Unix servers by about 20 percent. The price cut affects the company’s 8- and 16-processor systems. The ‘capacity-on-demand’ program has also been expanded. The latter makes it possible for a company to buy a server that is already equipped with extra capacity for the future (more processors than are needed at the time of purchase). The buyer only pays for the processors that are actually used. However, as soon as there is a need for expansion, the purchaser can enable the processors, in addition to paying the additional costs for those processors.

The company has mainly achieved the reduction in the prices for the servers by reducing the costs for the processors and memory. With the price cut, the company hopes to maintain its leading position in the market for Unix servers between $100,000 and $1 million. However, HP has recently faced stiff competition from the market’s number two and three, IBM and Sun, respectively: