IBM takes on rivals with lower priced server range

A worker is pictured behind a logo at the IBM stand on the CeBIT computer fair in Hanover February 26, 2011. The world's largest IT fair CeBIT opens its doors on March 1 and runs through March 5.

(Reuters) - Technology services provider IBM on Tuesday said it is aiming to take on competitors such as Oracle and Hewlett Packard by offering a more affordable Power Systems server and storage product range later this month.

"Big data and cloud technologies that were once only affordable to large enterprises are now available to the masses," said Rod Adkins, a Senior Vice President in IBM's Systems & Technology Group.

The company said it was rolling out new servers based on its Power architecture with the Power Express 710 starting at $5,947.

"The 710 is competitively priced to commodity hardware from Oracle and HP," IBM said, referring to Oracle's Sparc servers and HP's Itanium integrity servers.

"With these new systems, IBM is forging an aggressive expansion of its Power and Storage Systems business into SMB (small- and medium-sized businesses) and growth markets," Adkins added.

Forrester Research analyst Rich Fichera said that while the product range would not "make or break IBM," it was a signal to competitors and customers alike.

"They are serving notice to competitors saying we are not giving up and by continuing to offer ever-improving performance to customers, they are making sure there's no temptation to switch," he said.

The product launches on Tuesday. IBM said it will start delivering by February 20.

(Reporting by Nicola Leske)