IBM Hits Sun Microsystems In Midrange Server Space With P650 PSeries Server

In launching its latest pSeries server, the p650, IBM hopes to provide an attractive price/performance offering that will rival Sun Microsystems servers and capture new business.

"We're in third place in midrange Unix systems," said Jim McGaughan, director of IBM's eServer strategy. "We stepped back and took stock of where we are, and we're dead serious about taking aim [at this market."

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The p650 is priced at $29,995 for a two-way system and offers native Linux support.

Under the structure of its eServer division, IBM has begun sharing technologies among its server lines to develop an assortment of strong solutions.

The new p650 is based on IBM's Power4 processor technology and the company's AIX 5L operating system, and will offer native Linux support, said IBM executives. A two-way system costs $29,995.

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McGaughan said that price is lower than Sun's price for a comparable server and, at least for the time being, it's even lower than prices of similar systems based on Intel's Itanium 2 processors.

Clay Hales, president of InfoSystems, a Chattanooga, Tenn.-based IBM business partner, said the vendor's move comes at the right time to light a fire under systems sales.

"When I was first given the pricing, I thought it was wrong," Hales said. "I literally sent it back and said, 'Obviously, you sent me the wrong information; please send me the correct [numbers.' " But IBM told him there was no error.

Pricing for the p650 server caught not only Hales' attention; it also caught the attention of InfoSystems' customers, who are conveying renewed interest in adding servers to their IT solutions.

"The adjustments in the market don't happen overnight," Hales said. "But this one caught everyone's attention."

The p650 server should be available starting Dec. 6, said sources at IBM.