Microsoft’s Windows Server Foundation, a small-scale version of Small Business Server, is anticipated for release in early May. Windows Server Foundation is a server-class operating system built on Windows Server 2008 and aimed at the bottom end of the small business market. To get a sense of where the idea for Server Foundation came from and where Microsoft sees it offering value in the existing range of small business server products, I recently interviewed two Microsoft representatives involved in the server product range-- Iain McDonald, is a director in the Windows Server Group, and Martin Gregory, director of server and tools for Microsoft Australia.
Interview with Iain McDonald
Iain McDonald: The idea for Server Foundation came from when we were looking at some of the fast-growing countries like Brazil, India, Russia and China. We saw a disparity between what people could afford to pay for IT systems and what they were being charged, and we felt that there was room for a reduced-functionality version of Windows Server which came in at a lower price point. Interestingly, while we started down this path with our focus on countries like the ones I’ve mentioned, when we went through some of the product reviews with Steve Ballmer, he asked why we wouldn’t make this product available globally.
When you look at server-class hardware available for under $1,000, the capabilities are generally more than enough for any small business, but given the high cost of a Windows Server license on top of that, it’s strange that such a high percentage of the overall cost of a low-end server should be the software. We felt that there was clear market space for a low-end, entry-level server product.
James Bannan: What sort of limitations are we talking about?
Iain McDonald: A 15 user connection limit, which is not that different from the client product space which has a 10 user connection limit; there is no virtualization role; if the server is to be a domain controller, it has to be a single-DC domain (i.e., it can’t be in a domain with multiple controllers); and there’s a simplified licensing model around terminal server connections. Server Foundation isn’t designed to take over from Small Business Server or Essential Business Server, which offer richer and more complex environments.
James Bannan: Are the other current small business product SKUs going to continue in their current form, with Server Foundation coming in as a new offering?
Iain McDonald: Yes, they will carry on as normal. EBS and SBS are built for businesses that need extra functionality, and there is a lot of great work happening in those spaces with both Microsoft partners and community. Server Foundation is really aimed at those businesses that are using Windows XP or Vista as a server platform. We’re also requiring OEMs that sell Server Foundation systems to build them on a solid hardware base before it can ship with the server logo--many instances of system crashes we see are due to bad memory, so we’re looking to improve the reliability of systems available in the small business space, as well as offering greater functionality.
James Bannan: What sort of price point are we talking about?
Iain McDonald: I don’t know about the Australian market, but in the US market we’re looking at an OEM license for Server Foundation costing around $150 to $200, and it will only be available as OEM.
The business meetings we’ve been having around this product have been really interesting, because we’re changing the way in which we do business. In all my years of working with servers I never looked at a system which could be purchased for less than $3,000, but there is now a very clear space in the market for servers operating at well below this price point. The sort of cheap, accessible hardware available to home users to store their photos and music on is also more than adequate for small business needs.
James Bannan: It shows a very interesting blurring of the boundaries between the low-end business market and consumer space.
Iain McDonald: Definitely. With the increased “consumerization” of IT, gone are the days when small business owners relied on a third person for all their computer knowledge and support. Operators these days tend to know quite a lot.
On page 2: interview with Martin Gregory, director of server and tools for Microsoft Australia.
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