Windows SBS 2003 Standard Ships; Premium Edition Due In November

Executives announced the availability of the $599 edition of the standard server, which includes Exchange 2003 and Windows Server 2003, including the Windows Sharepoint Services intranet. The entry-level SBS 2003 also offers a Small Business Server Backup Wizard and shared contact database.

However, the Premium Edition, which also offers SQL Server and ISA 2003, won't be available until November.

Katy Hunter, a Windows server executive with responsibilities for Small Business Server 2003, said the Premium Edition has been released into manufacturing but won't appear on the price list and won't be available until next month.

She attributed the minor lag to integration code that had to be written to tie SQL Server 2000 and ISA 2004 to the 2003 editions of Exchange and Windows.

Hunter acknowledged that the BizTalk Partner Edition will be offered as a free add-on to buyers of Small Business Server 2003 Premium Edition during the first quarter of 2004.

Microsoft executives know the $599 price tag for the 2003 editions of the Windows server, e-mail and intranet SharePoint services offers significant value and will lead small businesses to SBS 2003 rather than to the pricier Windows Server 2003 Standard Edition. "There is no small business that should buy Windows Server Standard," said Allison Watson, vice president of the Worldwide Partner Group at Microsoft.

The company offered one version of Small Business Server 2000 only for roughly $1,500.

Observers said the aggressive pricing of SBS 2003 is a risky, but good, move for Microsoft, because it will give them deeper penetration into the SMB market and the ability to sell in Office 2003 System, .Net technologies and Microsoft Business Solutions.

"There's no question it's a very attractive product and a significant breakthrough in terms of pricing for Microsoft," said Paul DeGroot, a principal analyst at Directions on Microsoft, a newsletter in Kirkland, Wash. "It's unusual for Microsoft to come out with a product that will cannibalize sales of another product, but it's a smart bet."

Frederick Johnson, president of Ross-Tek, a Microsoft solution provider in Cleveland, has already deployed Small Business Server 2003 as well as Tablet PCs to a small medical practice, Advanced Pediatrics, in Beachwood, Ohio.

The new features and price point will help solution providers get more traction in the small-business space.

"Small businesses really need to look at technology consultants as a trusted advisor," Johnson said. "If they have a legal need, they have a lawyer. If they have a tax issue, they have a tax advisor. So why do they think they can do technology on their own?"

His own client answered that question. "IT is a scary animal to a small-business person," said Dr. Arthur Lavin, physician and owner of Advanced Pediatrics. "Most small businesses don't want to spend any money on IT."