Bill Gates unveiled Windows Home Server last Sunday at the Consumer Electronics Show in Las Vegas.
The software is designed to run on a dedicated device that automatically backs up the information on all computers in a home. It can also stream media and provide remote access to documents over the internet.
The server targets households with two or more PCs and a home network, of which Microsoft estimates there are about 40 million to 45 million worldwide.
Price will mostly depend on storage capacity, but Microsoft expects the device to retail at $500 to $1,000.
"The goal is trying to take the seams out [of backup and recovery]. There are too many choices and too many knobs and we ask too many questions. And we expect the people to know the answers to every question," Todd Headrick, a senior product manager with Microsoft, told vnunet.com.
"We are designing the product for families and the second-tier purchaser, the enthused follower who really looks at the enthusiast for guidance.
"The dream is that for Father's Day, a wife would buy one for her husband because she understands the benefits of backup and remote access."