IBM cuts workstation prices

IBM (IBM) reduced wholesale prices on its IntelliStation line of workstations, in an effort to boost its position in a market increasingly dominated by Compaq and Hewlett-Packard.

IBM cut reseller prices on the Intel/Windows NT-based office machines by up to 33 percent, a move that closely follows the October incorporation of Pentium II microprocessors and a 33-percent rebate scheme for end users that ran in September and October.

Intended for mechanical computer-aided design (MCAD), digital content creation, software development, and financial services, the IntelliStation workstation features Pentium Pro or Pentium II processors, in single- or dual-processor configurations. Hard drives range to 9.1GB in capacity and memory configurations can reach up to 1GB. Customers can also choose either 2D or 3D graphics. IBM's workstations further come with several remote manageability features.

IBM tarried in entering the workstation market in March, but the introduction of the IntelliStation M Pro series in July (combined with last month's incorporation of Pentium II chips) means that Big Blue has effectively caught up, from a product standpoint, to its principal competition: Hewlett-Packard, Compaq, Intergraph, and Digital Equipment.

So far, Intellistation customers have come in IBM's core workstation markets (CAD and finance) and in the segment of PC users graduating to more powerful workstations. A number of new wins, however, have come in the software design market.

Estimated reseller prices start at $2,430. IBM also said that it is offering an additional $500 reseller rebate for IntelliStations sold with selected monitors, through the end of the year.