ProLiant ML150: HP’s new SME server

Who says that only large hardware boxes can optimise performance? Here’s a small offering from HP that is set to achieve big computing targets, says Rahul Neel Mani

There was a need for a no-fuss server to handle their SME IT needs without all the bells and whistles that they didn’t need, says Vaibhav Phadnis

First, application software vendors went all out to reach the small and medium enterprise (SME) segment, and tried to develop packages that would suit their pockets. Now it’s time for the hardware vendors to develop products specifically for SMEs in developing economies. The first off the block is Hewlett-Packard (HP). The company recently introduced a low-cost, dual-processor server called ProLiant ML150 for the SME market in the Asian region, with special emphasis on countries like India.

It is a timely and ideal product for the value-conscious, growing business, seeking maximum productivity and efficiency at minimum cost and effort. But what made HP redraw its server strategy for the segment? What were the reasons for this change when the company claims that it is doing well in the Asian market as compared to other regions? Says Vaibhav Phadnis, country manager, ISS, enterprise server group, HP India, “In a growing economy there is business potential in both the enterprise segment and the SME segment. HP has done well in both, and we will continue to be in close touch with our enterprise customers through our focused sales team.”

The company says that in order to build on its success in the SME segment, it will continue to innovate and customise products that are suitable for this market. “Since the segment is growing at a tremendous pace, it’s quite natural to give an extra emphasis here,” states Phadnis. Market forces compelled the company to develop the ML150. Company sources say that its customers across the Asia-Pacific region had given feedback that there was a need for a no-fuss server to handle their IT needs without all the bells and whistles that they didn’t need. “This was when we decided to work closely with our customers to build the ML150 specifically for SMEs in the Asia-Pacific,” says Phadnis. HP is now betting high on its product strategy, which, it claims, is very dynamic and responds fast to customer pain points.

As soon as the company realised that there was significant demand from customers for a new product, the design team from around the Asia-Pacific region was called to understand what the market was looking for. The next step was collation of data, and the result was the ML150—a server that is simple to use and easy to set up, and one that has the right technology for the SME market.

What is the buying pattern for this particular product in India? Which companies will be buying it and why? HP says the ProLiant ML150 server is targeted primarily at the SME segment. The server can support up to 250 clients for applications from file/print and messaging to entry-level databases. “The ProLiant ML150 brings affordable computing to customers. Powered by Intel Xeon 2.4 GHz processors, it also provides availability through hot pluggable discs. The server has state-of-the-art features such as a server-class Intel 7501 chipset, 12 GB memory scalability, and up to 730 GB of storage capacity. It is the most suitable server for the SME class,” says Phadnis.

ML150 allows for tool-free replacement of major components to minimise downtime and maintenance costs. The server is also an optimal platform for resellers, allowing them to extend service offerings desired by their customers with world-class support from HP. In terms of attractiveness to customers, what is unique about the ML150 is that it is designed specifically to provide the right performance, features, and price point for growing SMEs.

Of late there is a growing trend of vendors—both local and multinationals—pushing low-cost server products to SMEs and SOHOs (small offices, home offices). This has actually become the best revenue generator for these companies that are otherwise facing a drought in the market in terms of new buyers and/or repeat purchases from existing customers. But Phadnis says this is a misconception: “There is growing business from the enterprise segment and a large amount of repeat business. HP has traditionally been strong in the enterprise segment and we will consolidate our position there.”

Moreover, Phadnis says, this huge growth in SMEs will have a cascading effect of the growth of large enterprises. “It is prudent for HP to work in every relevant segment of the market. On account of relatively smaller revenue size, the growth in the SME segment is bound to be faster than in the enterprise.”

HP claims the new product is better in terms of its management capabilities. It will help customers do the job without many IT staff. The ML150 supports the latest management tool—HP Systems Insight Manager, which is freely downloadable from the HP website. With the Insight Manager, customers can manage a variety of platforms, including the ProLiant ML150.

What distinguishes the ML150 from other such products is the reliability HP brings to its product range. Customers buying HP products can get required guarantees and service support. “The product has the backing of the HP organisation, which has been repeatedly rated as the channels’ and customers’ vendor of choice,” says Phadnis. This explains why the company has decided that for now ML150 will be available only through channel partners and will not be available directly.

For those who are unaware, a few months ago HP had unveiled another server for SMEs, which the company said would help its reseller network generate revenue from services. It was the tc2120, replacing the tc2110 from pre-merger Compaq. But there are basic differences between the two. HP tc2120 is a single CPU-capable Intel Pentium 4-based server, whereas the ProLiant ML150 is dual CPU-capable Intel Xeon processor-based server. The tc2120 is ideal for entry-level loads, whereas the ML150 will scale up to support 250 clients. Priced at Rs 94,990 (excluding taxes), the ML150 looks set to do well in terms of adoption.

HP is very bullish about the new launch. Sources close to the company say that this product will open up a new class of servers for customers by offering them an ideal combination of performance and price. “The biggest beneficiary, as always, will be the customer,” declares Phadnis.

The company plans to further explore this market segment with new products. The strategy would be to launch more such products with different configurations. But for now, “HP expects to sell at least 500 units of the ML150 in a quarter. We intend to grow our SME revenues by 25 percent through the year,” reveals Phadnis.

rahul@expresscomputeronline.com