ANTenna Blog -- Hardware & Software

With Windows Server Foundation, Microsoft makes a bid for the 15-employee and smaller business server market and gives chase to the 70% of SMBs that don't have a server.

Citing IDC and other studies, Russ Madlener, director of Windows Server Solutions for Microsoft's server and tools division noted that the reported 70% of the tens of millions of small business without a server was a juicy target for Microsoft. He noted that rounding out the Windows Server product line to capture this market was a process years in the making, but focused more on the needs of small business owners. Specifically, he pointed to two drivers for small businesses getting their first server, both with an emphasis on simplicity. He said, "First, [small businesses] want to run line of business applications, that's the most common need. Second, they want to centralize data so they can share files and backup."

Recognizing that a significant hurdle to acquiring the first server is complexity, both real and perceived, Microsoft has taken pains to present Windows Server Foundation as a simple, pre-packaged solution. To that end, it's only available through Microsoft's OEM partners Acer, Dell, HP, and IBM. The idea is that you buy a machine, take it out of the box, plug it in, and off you go.

There is, of course a migration path to allow the move to the other offerings in Microsoft's server line.

The new server operating system will be available in 40 countries and through September 30, 2009, Microsft will contribute a portion of sales to TechSoup and Telecentre.org, two global non-profits that promote using technology more effectively.

Of course, for businesses that haven't taken the plunge to buying their first server cloud may offer an appealing option. Madlener acknowledged the cloud as an alternative, but predicted that most businesses will pursue a hybrid cloud and on-premise strategy, saying "I think we'll see a mixture of the two, but there's still a huge opportunity for on-premise servers. For many small business people, the cloud still seems a little magic. There are files and data that they want locally; they sleep better at night being in control of that data."

And what of Foundations lack of virtualization? Madlener pragmatic point was that "if Foundation is going to be their first server, there's not much to virtualize."

Then there's that 70% market opportunity. How much of that can Microsoft capture? Madlener conceded that he didn't know, but did admit that he'd love to see that number decline to 30%.

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