Apple Sets Its Sights On Microsoft In Small Business

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Microsoft, with a few Linux-based exceptions, has pretty much had the small business server space to itself, and Small Business Server (SBS) has faced virtually no competition. But according to solution providers, Apple's Mac mini with Snow Leopard Server is creeping into the small business discussion on the strength of its robust functionality and lower cost.

In October, Apple launched its $999 Mac mini with Snow Leopard Server, a customized hardware-software bundle that lets companies add an unlimited number of Mac and PC users without incurring licensing fees for each user. In doing so, Apple took direct aim at Microsoft's SBS and dangled a carrot to companies that have been looking for lower-cost alternatives.

Several new Snow Leopard Server features have made it more suitable for small business deployments. These include iCal Server 2, Address Book Server, Mobile Access Server, and improved administration that makes it easier to support both Mac and Windows clients, according to Jason Harrison, president of Harrison Technology Consulting, Nashville, N.C.

"Mac Mini with Snow Leopard Server can easily replace the vast majority of our SBS installs at a fraction of the cost with little sacrifice in functionality and no client seat licensing. Plus, you get the ability to cluster and a price that's less than the typical SBS deployment," said Harrison.

Launched in 2008, SBS 2008 been a tough sell in some parts of the small business space. Microsoft added new features in SBS 2008 but also raised both its price and hardware requirements. SBS 2008 Standard Edition is priced at $1,089, including five client-access licenses (CALs), with additional CALs priced at $77. SBS 2008 Premium Edition is priced at $1,899 with additional CALs priced at $189.

The fact that SBS 2003 still meets the needs of many companies has also made the upgrade costs difficult to justify. "There are some things SBS does better, but at a steep price that simply does not add up for many small businesses," said one Microsoft solution provider, who requested anonymity.

"It's fair to say that a lot of people were not happy with the price increase in SBS 2008, even though they understand that Microsoft has its reasons for positioning SBS 2008 at that price point," said Eriq Oliver Neale, principal at EON Consulting, a Denton, Texas-based SBS MVP who works with PCs and Macs.

Asked whether Mac mini with Snow Leopard could eat into Microsoft's SBS market share, Neale said it depends on what an organization is trying to accomplish. "If you just need a small, inexpensive box for e-mail, file storage, and a level of security, Mac Mini with Snow Leopard Server is worth a look," he said.

But while Snow Leopard Server has made some advances, it still lacks the directory management features of SBS, Neale noted. "It's great for a basic file server, and has made real strides in Web enabled interactions that we're used to in SBS. But if you have line of business apps that run on Windows platform, you're not going to want Snow Leopard in there."

Next: Is Mac mini Really Server-Class?

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