Server Bundle for Midsize Businesses

To convince midsize businesses to upgrade their server software, Microsoft has introduced a discounted bundle of Windows Server System products. The bundle, announced at Microsoft’s Worldwide Partner Conference in July 2005, does not have an integrated setup, which is a feature of Microsoft’s Small Business Server (SBS), but is priced to encourage businesses to upgrade older software such as Windows NT 4.0 and Novell NetWare. If the promotion is successful, additional products may be added to the bundle in the future.

Large Market, but Hard to Reach

Many IT vendors struggle to tap the approximately 1.2 million midsize businesses that Microsoft defines as “midmarket,” a market segment that the company believes could spend up to US$30 billion per year on Microsoft products. The very attribute that makes this market attractive-its size-makes it too expensive for Microsoft and other software vendors to reach and support without a network of partners. (For a description of these markets, see the illustration “Microsoft’s Markets“.)