There's a real cannibalization risk with low-end server push, Microsoft

Microsoft runs the risk of cannibalizing some server sales with the release of Windows Server 2008 Foundation Edition (download), a low-end version of the server operating system that will ship installed on servers that cost as little as $500. But the potential boost of expanding the market for low-end servers outweighs the risk of losing […]

Microsoft runs the risk of cannibalizing some server sales with the release of Windows Server 2008 Foundation Edition (download), a low-end version of the server operating system that will ship installed on servers that cost as little as $500. But the potential boost of expanding the market for low-end servers outweighs the risk of losing some sales of more expensive versions of the operating system. "There is a real cannibalization risk on the upside product," said Bill Hilf, general manager of Windows server marketing and platform strategy at Microsoft. "But you have to believe that the overall growth of the pie, if you expand the pie, that it outweighs the cannibalization risk."

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