HP offers small servers for web hosting

Central to yesterday's launch was the unveiling of two new rack-mounted Intel servers, dubbed NetServer LP1000r and 2000r respectively. HP claims the servers deliver unmatched performance per square metre of space used, a key factor given the cost and limited availability of space in data centres and telco co-location facilities.

Alberto Bozzo, operations manager of HP's netserver business, EMEA, told silicon.com that HP is convinced the service provider market will explode over the next few years. "Many companies are betting their future on the ASP, amongst other service providers, and HP clearly wants to be at that hot spot."

HP also announced a host of new server appliances for service providers and a suite of software and hardware - to be called e-utilica - which it said amounts to a complete off-the-shelf service provider infrastructure.

HP claims its two latest servers use new cooling devices to fit up to 42 in a rack, reducing the space needed by the machines. The company added that their multi-operating system capability - Unix, Linux and Windows2000 - reflect the needs of SPs working on the web.

HP is betting on the service provider market more than most. Not only is it specifically tailoring products to fit that niche, but for the last year it has also offered corporate financing to start-up service providers of all kinds. HP refused to say how much cash it has invested.

HP claims to already see a significant market among network service providers - firms offering data services over IP networks - for these products. It also claims that ASPs will form an increasingly large amount of its customers - a market which is yet to take off in Europe.

Bozzo said: "We are absolutely convinced the ASP model will work. Corporates already want to outsource some of their IT to the data centre, soon we will see SMEs outsourcing all of their IT operations there."

Bozzo said HP intends to continue to increase the percentage of its revenue garnered from the SP market. HP, like other PC manufacturers, has suffered slowing PC revenues in recent months.