Microsoft Ready To Ship Small-Business Server

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March 19, 1999 (12:00 AM EST)

Microsoft Ready To Ship Small-Business Server

Microsoft is going gold with its newest Small Business Server next week.

Microsoft's BackOffice Small Business Server 4.5, which will be released to manufacturing on March 23, is "rock solid" and will begin shipping to the reseller channel in April, said sources briefed on Microsoft's plans. Beta testers received the final beta, beta 3, approximately two weeks ago. Microsoft released the first beta version in January.

Beta testers said Microsoft has made major progress in making the BackOffice suite more customizable, flexible, and suitable for small and midsize businesses than its predecessor, Small Business Server 4.0. Increasing the PC access limit to 50, up from 25, and increasing the database limit to 10 gigabytes -- up from 1 GB per database -- ensures that this version of Microsoft Small Business Server will be attractive to a wider range of small businesses, beta testers said.

"That was the most important thing -- increasing the access limit. It was vital becausemost of my clients have between 25 and 50 PCs," said Martin Abelkop, a partner in Total Solutions of Moorestown, N.J., a beta tester, who added that the final beta he is working with incorporates significant new security features for Exchange and a flexible fax installation procedure. "Many of my clients say [the 25-workstation access limit] meets my need today, but there's no head room. They misgauged the market a little there. But this product is a godsend and it works. I have clients that are ready to go."

Microsoft's first stab at the small-business server market, Small Business Server 4.0, was met with mixed reaction because of its 25-workstation limit -- considered too few seats by many small businesses interested in the server -- and its lack of flexibility and customization. Version 4.5, aimed more at value-added resellers than retailers, lets professionals add as many drivers and modems as they wish, rather than be limited to a preset list.

The server upgrade not only offers the full line of upgraded business servers, including Exchange 5.5, SQL Server 7.0, Internet Information Server 4.0, and Proxy 2.0, but also increases the workstation access limit to 50 and increases the database size to 10 GBs and the ability to have an unlimited number of databases. Built-in faxing and modem pooling are other value-adds.

Small Business Server 4.5 is priced at $1,499 for server and five-client license.

Prior to the release, small businesses running more than 25 PCs had to decide whether to spend about $5,000 for the full BackOffice suite, buy a separate 25-user copy of Exchange and NT 4.0 for about $4,000 or use pirated software, said the beta testers, who are both value-added resellers.

"They'll now get some pirate users that couldn't afford to buy it before. Now they can afford it and be legal," said Rick Daniluk, owner of his namesake consulting firm in Aurora, Colo. "And it looks rock solid at this point. I'd sell the current version I've got."

Microsoft will begin shipping Small Business Server 4.5 next month and will offer the upgrade free to existing users of Small Business Server 4.0. The Redmond, Wash.-based company also is prepping a version of Small Business Server for Microsoft's forthcoming NT 5.0 server, which was recently renamed Windows 2000 Professional.