Microsoft Readying Low-Cost Windows Server OS

Microsoft plans to release “something akin to” a netbook version of Windows, but for servers, not PCs, over the next month or two, Microsoft CEO Steve Ballmer said on a call with members of the financial community on Tuesday. He said that although there is not high demand at the moment for netbook-like server hardware, declining prices in the server market make a low-cost OS an attractive option for customers. “We don’t exactly have a netbook phenomenon, but if somebody can buy a [US]$500 server, they’re a little loathe to spend $500 for the server operating system that goes with it,” Ballmer said. He described the software as a “low-cost, low-price, low-functionality Windows Server SKU” called “Foundation Edition,” but did not offer more details.

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