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New Rules for Cheap Servers

by Stephen Swoyer

July 19, 2004

These days, the entry-level price for a bare-bones server seems to be about $499 – excluding software, of course. Tier-one manufacturers such as HP, IBM and Dell all market systems at this price range – although all three vendors have been known to go much, much lower.

Earlier this year, for example, Dell Small Business was blowing out 2.26 GHz Pentium 4-based systems for around $240. That’s for a PowerEdge 400SC server with all of the standard fixings. Think that the 2.26 GHz Pentium 4 is old news? Try a 2.4 GHz Pentium 4 – with an 800 MHz FSB – for around $300. Add after-market accoutrements such as memory (1 GB) and ATA RAID (controller and extra drive) and you’ve got a dandy little server for less than $700. But that’s nothing: If you’re not afraid to go the white box route, and you’re partial to chips from AMD, you can build a system for even less.

The irony, of course, is that software costs exceed those of servers – on the low-end, at least. A copy of Microsoft’s Small Business Server (SBS) typically sells for around $500, after all, and if you add Exchange or SQL Server to the mix, you’re talking about several thousands of dollars more.

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But what do you get for a sub-$500 server? Just the basics, ma’am: A not-exactly-cutting-edge – but nevertheless plenty fast – Pentium 4 or Athlon XP processor; Ultra ATA hard drive in the 40-80 GB range; memory configuration of between 128 to 256 MB; integrated video card; and 100 or 1,000 Mbps Ethernet. Add RAID 1 functionality and additional memory, and most tier-one vendors still come in at just under $1,000 – once again, excluding software costs.

What can you do with that kind of computing horsepower? Plenty, says Bryan Lucas, an Exchange administrator with Texas Christian University who does small business consulting on the side.

“I've got one environment with a dual-Pentium II 350 MHz with 384MB RAM running [Active Directory] and Exchange 2000 supporting approximately 85 users,” he comments, adding that he also supports a dual-Pentium III 500 system running IIS 5.0 and SQL Server 2000 that hosts about 50 websites. “It really depends on load, [but] you can get buy with far less than what everyone is pushing nowadays, that is, the Pentium 4s and such.”

Not surprisingly, small business and small office/home office environments remain the most ardent consumers of sub-$1,000 servers. “There’s a big play in small business for running file-and-print-type activities, and … you can stay well under $1,000 with half a Gig[abyte] of memory and a second drive, and that’s good enough for people running file-and-print,” says Stuart Mcrae, manager of xSeries product marketing with IBM. “For a small business, if you add in Microsoft Small Business Server for around $500, this gives you a server with features that 12 months ago, you had to pay well over $2,000 to get.”

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Mcrae says that sub-$1,000 servers are also popular in some distributed enterprises – such as branch offices, or retail stores. “Think of large banks, insurance companies, certainly retail outlets where they do groceries, shoe chains, pharmacies -- those businesses have hundreds if not thousands of stores in a very dispersed environment, and they need a reliable platform in that store that runs their cash registers,” he comments.

But what about large, centralized IT organizations? Not surprisingly, Mcrae and many enterprise users say, sub-$1,000 servers aren’t a common play in such environments. That’s because the sub-$1,000 server figures a situation – i.e., the uncontrolled proliferation, ala the fecundity of the proverbial bunny rabbit, of many standalone servers – from which IT organizations are struggling to free themselves. Call it a Malthusian crunch of sorts. “The big trend in large enterprises that we see is consolidation, whether it’s physical or virtual consolidation of their distributed server resources,” Mcrae confirms.

Even if enterprise IT organizations aren’t consolidating, they typically require more robust data consistency and reliability features than can be had at the sub-$1,000 price range. “We certainly sell many, many of our servers for work group applications, but the type of RAID you get in a $1,000 server is not the same type of performance and reliability that you get in a $5,000 server, customers know that and choose accordingly.”

Take TCU’s Lucas, for example, who says that his organization typically opts for more expensive fare. “We pretty much only buy Proliant DL380's [at approximately $4500 each,” he confirms.

One big difference between sub-$1,000 servers and their more expensive brethren is in the area of storage. Most sub-$1,000 servers use ATA- or Serial-ATA-based (RAID or non-RAID) storage, while more expensive systems – such as HP’s ProLiant DL380 servers – exploit SCSI-based RAID storage. The difference, Lucas insists, is important, in spite of the fact that Serial ATA has closed part of the performance gap with SCSI.

“IDE is fine for static, infrequently accessed storage where there are few users,” he says. “[W]e've purchased five SnapServers [network attached storage devices marketed by Quantum] and one of whatever Maxtor called their product. They all sucked, horrible. Whenever you had more than two people writing to it at the same time the speed went downhill fast. Worse, we've suffered a drive failure in all but one of the SnapServers.”

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Adds Lucas: “Now, say all you're doing is a Web server where most of the files are in the controller’s cache or in memory, well then an IDE drive is just fine. Add a database though to the Web site for transactions and you'll see performance take a hit if there's lots of reads and writes.”

Ray Zorz, a Windows administrator with UCP Central Arizona, a non-profit advocacy organization for people with disabilities, believes that the sub-$1,000 server delivers compelling value – at least, for small businesses and other organizations that operate on tight budgets. “Unless you're needing multi-processor, gigs of memory and a lot of [redundant hard drives], chances are most of your applications will run just fine on a sub-$1000 server,” he comments.

Zorz, too, opts for SCSI-based storage where possible. In this respect, he says, white box server vendors are an oft-overlooked avenue of opportunity, especially for companies with in-house IT know-how who don’t mind sacrificing service contracts. “When we bought our servers, which were definitely not sub-$1,000, we looked at Dell, Compaq and IBM. A similar configuration to what we purchased would've been several thousands of dollars per server more expensive,” he concludes.

You can contact Stephen about "New Rules for Cheap Servers" at mailto:?Subject=New Rules for Cheap Servers.




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