HP cuts prices on midrange Unix servers

Hewlett-Packard (HP) has reduced prices for its midrange Unix servers by about 20 percent and expanded customization options, the company said Thursday.

The price reductions apply to the 16-processor rp8400 and the eight-processor rp7410 and rp7405 servers, HP said in a statement.

"The price cuts are in response to market trends," Norbert Boege, category development manager at HP in Germany said.

In addition to the price cuts, HP now offers factory configuration services including partitioning, custom component installation and software load at no charge. Also, users can now choose to have entire "cell" boards with processors and memory switched on when they need it, the company said.

Previously, customers could only get processors on demand, ordering for example 12 processors for a server and only paying for those they would be using right away. However they would have to pay for the memory and the cell boards for all the processors in the machine. Now, with the cell board on demand offering, customers pay an initial fee, but then pay full price for cell board, memory and processors as they decide to switch on the processors.

"The financial benefit and flexibility for the customer has increased," he said.

Midrange Unix servers are systems that cost between US$100,000 and $1 million, according to market researcher IDC. HP's midrange servers start at approximately US$80,000 up to several hundred thousand, Boege said. HP's chief rivals in this market are Sun Microsystems and IBM.

The price cuts are worldwide and effective immediately, HP said.

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