HP unveils servers with new focus on power useage

Hewlett-Packard on Monday rolled out an updated line of computer servers featuring Intel's new Nehalem Xeon microprocessor, touting their lower power use and higher performance to capitalize on customers' cost-cutting initiatives.

SANFRANCISCO: Hewlett-Packard on Monday rolled out an updated line of computerservers featuring Intel's new Nehalem Xeon microprocessor, touting their lowerpower use and higher performance to capitalize on customers' cost-cuttinginitiatives.

Thesixth-generation of the company's ProLiant servers comes in 11 tower, rack andblade platforms -- different arrangements or physical set-ups -- in what thecompany calls its largest roll-out ever for the line.

It's HP's first refresh orupdate for the ProLiant line in three years and starting prices range from $999to $2,105 apiece. X86 servers are low- to mid-range units based on standardindustry components.

HP saidthe new ProLiant models draw half the power of the previous generation andfeature a power "capping" function to better manage energy usage. In addition, acollection of sensors will track heat in the server and automatically adjustcomponents such as cooling fans to increase efficiency.

The servers also house twicethe memory and storage of the previous generation, the company said.

Paul Gottsegen, a marketingvice president for HP's industry standard servers, said companies areincreasingly looking at energy usage to save costs.
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"We realized customers werelooking at every dollar per watt so we turned over every rock within theengineering team to find out how we can help customers with power efficiency."

HP is the No. 1 maker of x86servers, holding a roughly 38 percent market share, while second-place Dell holds a 22 percent share.

HP is No. 2 in the overallserver market with a roughly 30 percent share, just behind rival IBM.

Intel isformally unveiling its Nehalem Xeon server processor on Monday and a number ofcompanies are set to ship server products that include the chip, including Delland IBM.
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Gordon Haff, ananalyst with Illuminata, said it's tougher for companies to differentiatethemselves in x86 servers but thought HP's new lineup looked strong.

"At some level everyone'sproducts are more similar than they are different, but HP does have a lot ofgood features in here around power."
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HP's new server announcementcomes as the ground shifts in the enterprise market. IBM is in talks to acquireSun Microsystems, sources say, in a deal that, if completed, would challenge HPin the high-end Unix server market.

At the same time, networkequipment maker Cisco Systems Inc has announced its entry into the servermarket.

Shares of Palo Alto,California-based HP fell more than 4 percent, or $1.44, to $31.90 in lateafternoon trading, mirroring a decline of the broader market.
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