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News In Review

September 22, 1997

IBM Takes On Compaq, HP

State-of-the-art server emphasizes service capabilities

By Bob Francis

I BM this week reinvigorates its PC server line with the launch of a new, rebranded high-end model with state-of-the-art systems-management software.

And, while the new server is aimed directly at competitors such as Compaq Computer and Hewlett-Packard, IBM plans to differentiate its system by emphasizing the company's service capabilities, say sources briefed by IBM. Those services include help with remote network management, LAN management for Windows NT, cluster planning, and software administration, as well as preinstallation of Lotus Domino on servers, say the sourc es. To make the line even more attractive, IBM will introduce new financing options. IBM declined to comment.

IBM has already had success attracting new business by pairing its services with its hardware. Paul Wesphal, senior executive VP of finance at Los Angeles television-production company All-American Communications Inc., recently began leasing new IBM PCs because of the vendor's asset-management service offerings. "It's taken care of a lot of headaches for our IS department, because we have IBM support and we can trade in these machines for new technology in two years if we want," says Wesphal.

IBM's new high-end server, which now uses the brand name NetFinity, will compete against Compaq's recently announced high-end ProLiant 7000 systems, which were launched last month. The NetFinity 7000, powered by Intel's 200-MHz Pentium Pro processor, is capable of four-way processing and can be upgraded to eight-way in the future, say the sources.

Starting at around $15,000, the system will also incl ude up to 54 Gbytes of internal storage, two internal Ultra-Wide SCSI controllers, and up to 4 Gbytes of error checking and correcting (ECC) RAM. The new server will also feature improved hot-swappable disk capabilities, allowing hard drives to be switched in and out without powering down the server.


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