A bitter war of words has broken out between IBM and Compaq over the price of entry level servers, with Big Blue accusing the number one PC vendor of ?irresponsible marketing?.
The row follows a similar accusation from UK vendor Elonex. Six weeks ago it said Compaq?s claim to have a server for the SME market for under #1,000 was not possible.
Mike Lunch, UK general manager of the IBM PC Company, said: ?Compaq is suggesting its #999 server is a machine to bet your business with. It?s an irresponsible market ploy. It?s irresponsible of the world?s leading PC vendor to mislead the public. To encourage them to believe they?re getting a machine to run their business on is irresponsible.?
He said that IBM will introduce a version of its 310 server in two weeks time that will include a 166MHz processor, 16Mbytes of memory and an Ultra SCSI drive that will work out of the box, while Compaq's machine needs add-ons to achieve the same specification, he claimed.
But Compaq UK hit out at IBM?s claim. Hugh Jenkins, enterprise group product manager, said: ?Their entry level 310 server starts at #1,700 and, lo and behold, it?s their number one model without a disk. So what?s the beef? Our product starts at #995 and that?s list price. Show me the last person who ever paid list price from Compaq.?
Jenkins added: ?We are making a strong statement we have a product at an extremely attractive price. Our intention is to remain the number one supplier for servers.?
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