IBM Challenges Sun, HP with Entry-Level Linux Server

IBM (NYSE: IBM) is set to tackle the entry-level server market next month with the release of its two-way OpenPower 710.

The RISC-based open-source server is designed to compete head-to-head with Hewlett-Packard (NYSE: HPQ) and Sun Microsystems' (Nasdaq: JAVA) servers for Unix and Linux, but Illuminata analyst Gordon Haff told LinuxInsider that IBM's product has a built-in advantage.

"What's different about this server -- and indeed the OpenPower line in general -- is that IBM is taking on x86 price points with a RISC-based server line. And, in the case of POWER5, that means better than x86 performance and a very good, and cost-effective, server virtualization option," he said. "By contrast, both HP and Sun largely depend on their x86 lines to attack entry-level price points."

Better Performance

IBM claims that the performance of the OpenPower 710 two-way Linpack HPC beats both the HP Itanium 2 rx1620 and rx2620. Peak performance of the two-way SPECompM2001 beats the Sun Opteron V40z.

IBM is positioning the rack-mount system as a good choice for data center consolidation and enterprise-class scale-out growth. The OpenPower line, which IBM introduced in September with the four-way 720, runs Novell's SuSE and Red Hat (NYSE: RHT) Linux distributions.

The company also announced that 250 more applications have been optimized to run on OpenPower. About 900 applications, including Sybase (NYSE: SY) ASE, have been optimized for OpenPower, according to IBM.

"Applications are the challenge. IBM has certainly gotten a fair number on board, but there are certainly far, far more on x86-Linux," Haff said.

Application Strategy Makes Sense

Big Blue's announcement today included news of an optimized SAP (NYSE: SAP) solution with IBM DB2 and maxDB and IBM OpenPower Consolidation Express. Consolidation Express allows customers to combine separate Web, file and print, directory, firewall and e-mail servers onto one OpenPower 710.

Haff said he believes focusing on these applications is a smart strategy. "As a practical matter, however, IBM is initially targeting some specific areas such as SAP and file/print/Web which keeps the number of applications needed down," he said.

The server, with 1.65 GHz Power5 microprocessors, will be available Feb. 18 at a starting price of US$3,449.