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Gateway releases budget servers

The company targets government offices and small businesses with new servers that start at $499.

Gateway on Tuesday released new budget servers targeted at government offices and small businesses.

The Gateway 9115 and 9120 servers, which start at $499, contain one Pentium 4 or Celeron processor and measure 1.75 inches high, so they can be slid into computer racks.

Although Gateway is primarily known as a consumer company, it has maintained a sizable presence in the business market. Approximately half its revenue in 2003 derived from government, educational institutions and small to medium-size businesses. During the Clinton administration, Gateway was one of the more prevalent brands inside the White House, according to sources close to the company.

While the company's merger with eMachines earlier this year will push Gateway further into the consumer market, the Poway, Calif., company said it will continue to invest in business systems. In 2004, Gateway plans to come out with more two- and four-processor systems along with low-cost storage systems.

The 9115 system, which costs $899, comes with a Pentium 4, an 80GB serial ATA hard drive and integrated gigabit networking.

The 9120, meanwhile, starts at $499 with a Celeron processor. The hardware is about $100 or so less than competing products from other manufacturers, according to Gateway, although actual sales prices can vary by the transaction.

At that price, the hardware costs almost as much as the operating system. For the 9115, adding Windows 2003 Server costs $799 and Windows Server 2003 Web slaps on an extra $369.

With the 9120, customers can get Windows Small Business Server for $499 or the premium version of Windows SBS for $1,199.

Both products will begin to ship in two to three weeks.