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Strategies & Market Trends : Angels of Alchemy -- Ignore unavailable to you. Want to Upgrade?

To: Smart_Money who wrote (22156)	11/29/2000 2:12:39 PM
From: ColtonGang	Read Replies (1) \| Respond to of 24256

Why HWP hangs in there.........H-P makes a power play against rival Company unveils entry-level computer to compete with Sun ASSOCIATED PRESS SAN JOSE, Calif., Nov. 28 — In yet another power play against archrival Sun Microsystems, Inc., Hewlett-Packard Co. introduced a entry-level computer server Tuesday that it claims is the fastest of its class in the industry. THE COMPANY SAID its new L3000 outperforms its current low-end L-class servers by 50 percent and has enterprise capabilities that were available only with higher-priced systems. The model serves the growing market for entry-level servers that run on the UNIX operating system and conduct the heavy-duty tasks of business networks and Web sites. “H-P today is delivering the solution that is a generation ahead of the market,” said Mark Hudson, worldwide marketing manager of HP’s business systems and technology organization. The L3000 starts at $39,000 per unit. By comparison, models of the Superdome — which H-P claims is faster than Sun’s flagship E10000 server — start at $400,000 per unit. With both new products, H-P is taking aim at Sun, which has long been the market leader in servers, the large computers that make up the backbone of the Internet. Analysts estimate Sun holds 31.5 percent of that market, with H-P near 25 percent and IBM Corp. 19 percent. “It’s a good thing there’s this kind of race because it keeps Sun sharp,” said Martin Marshall, managing director of market research firm Zona Research, Inc. “It puts the pressure on them to come out with better price performance.” The tightening competition from H-P comes at a difficult time for Sun, which has lately acknowledged problems with its hardware that has caused servers to reboot unexpectedly. Also, the release of its next processor, the Ultrasparc III, has been delayed.