Undaunted HP Upgrades Intel-Based Servers

Earlier this month, even before HP shareholders were scheduled to vote on the merger of HP and Compaq Computer, HP server executives said they were moving full-speed ahead with a new server product strategy. According to market-share numbers, Compaq has a greater share of the server industry.

"We are working under the assumption that we still need to compete with Compaq," said Marc Jourlait, North American director of IA-32 servers at HP. "These products will live a normal life cycle irrespective of the merger. [Customers can invest safely and confidently."

HP's server strategy is a highly segmented offering in the Intel processor space, including the first-ever server based on a Pentium 4 processor.

The servers include the tc2110, a single-processor server based on the Pentium 4 and aimed at SMBs, priced at $1,099; the tc3100, a Pentium III tower server being touted for its expandability and also targeted at SMBs, is $1,499; the tc4100, a dual-processor, Pentium III-based tower server targeted at workgroup and remote office solutions, is $2,599; the tc6100, built with the newer Intel Xeon processors which, with an upgrade kit, can scale to four-way processing, is $4,399; a tc7100, a rack-mountable, 5U four-way system with Xeon processors, is $7,149; and the rc7100, a rack-mountable version of the 7100 built in a 3U form factor, is $8,469.

Ray Weston, president of 1st Priority Computer Service, an HP solution provider in Phelps, N.Y., praised the server line, giving HP high marks for product reliability and keeping solution providers trained and authorized.

Weston said he didn't think any uncertainty regarding the merger has affected, or would affect, his clients' strategy in acquiring HP servers. "HP has always been a great name. HP stands behind its product," he said.

There was, however, some skepticism among solution providers.

"I'm not sure what to think of it," said Jim Hemani, director of sales at Microaccess, a Skokie, Ill.-based HP solution provider. "We deal with a lot of Fortune 1000 companies. You can pitch them HP servers, but they are all scared to buy anything with those [HP and Compaq brands."

HP will attempt to give solution providers incentives to wrap services around the company's brands, Jourlait said.

"If somebody wants a four-hour call to repair, a channel partner is probably in a much better position to do that than HP," Jourlait said. "HP is not going to prevent [the partner from owning that relationship."

The server rollout is the first major refresh since HP unveiled an Intel-only server strategy last year and dropped its PA-RISC processor technology.

Compaq has also decided to scrap its own Alpha processor development in favor of an Intel Itanium server strategy, regardless of the outcome of the HP-Compaq merger.

HP also rolled out new storage products that could be leveraged with Compaq's storage hardware in a post-merger company, executives said.