HP cuts prices on rack-optimized servers

Taking advantage of a hot market for rack-optimized servers, Hewlett-Packard Co. (HP) on Monday slashed prices on several rack-optimized HP Netserver systems by as much as 23 percent, according to HP officials.

Through a combination of discounts and rebates, HP's Netserver LP1000r and LP2000r, both two-way Intel-based servers that run either Windows or Linux operating systems, can now be purchased for as little as $950, depending on configuration, HP officials said.

HP will offer rebates of as much as US$850 through authorized commercial resellers for HP Netserver E800, LC2000, which are Intel-based workgroup servers. The already discounted LP1000r and LP2000r servers will also be included in the rebate program.

Normally, an HP Netserver LP1000r with two 866MHz Intel Pentium III processors costs $1,499 through HP's online business store.

Despite recent declining revenues in the overall server market, sales rack-optimized servers have enjoyed a revenue growth of 87 percent since the first quarter of 2000, according to a recent report by International Data Corp., in Framingham, Mass. Non-rack optimized server revenue fell nine percent for that same time period, the IDC report found.

HP is the No. 2 server vendor in the world with a 16 percent revenue share, according to IDC.

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