InformationWeek

October 25, 1999

HP Targets Low-End Market For Business Desktops
Sub-$500 unit could bring down prices for models aimed at small and midsize companies

By Aisha M. Williams

ewlett-Packard jumped into the cheap-PC battle last week, unveiling a new member of its Brio line of desktop PCs aimed at small businesses. The BA200 is priced at less than $500 and may force other big-brand computer makers to compromise their price points indefinitely for small and midsize companies if they want to compete in this rapidly growing market, analysts say.

"HP is the first company I've heard of that offers a price point so aggressive for a business-class machine," says Eric Klein, an analyst at the Yankee Group. Klein says HP's latest offering will set a new benchmark for machines of this caliber. "I don't believe that business desktop PCs need any more power than what the BA200 will provide."

The BA200 has the same specifications as its predecessors, but offers three PCI slots instead of four and a 40X CD-ROM drive, rather than a 48X drive. It comes with a 4.3-Gbyte hard drive, a 433-MHz Celeron processor, 32 Mbytes of RAM, and Windows 98. The BA200 is certified to run Novell network operating systems, Windows NT, and Linux.

HP said earlier that it will be teaming with AT&T WorldNet Services to provide small and midmarket companies with an end-to-end Internet business solution using AT&T as an Internet service provider. Users connect to the Internet, via AT&T, to an HP-customized Netscape portal that contains business resources.

The BA200 is available now, with prices starting at $499. Processor, memory, and drive upgrades are available. AT&T's Internet connection services start at $9.95 per month for 10 hours of access, or $21.95 for unlimited access.

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