Adverts in the national press demonstrated that Compaq is setting the agenda on entry level prices for the small and medium sized market.
The company has cut the cost of its entry level servers from #995 to #895 this week but that is likely to force IBM to slash its own prices, set last week.
However, debate still rages over whether SMEs will buy machines that do not include monitors or hard drives, which are priced as optional add-ons. In March, IBM's country manager Mike Lunch hit out at Compaq over its pricing following a complaint from Elonex that Compaq was selling an SME server that didn't include all the necessary elements.
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