Hewlett-Packard has slashed more than a quarter off the price for its recently introduced line of high-density ultra-thin NT servers.

Competition on price with market rivals Compaq and IBM has persuaded HP to drop prices of its LP1000r and LP2000r NetServers, which were launched in January, by 28 per cent to its customers in Europe.

The boxes are targeted at telcos and application service providers, who will see prices fall to £1,427 for the LP1000r and £1,083 for the LP2000r.

Industry watchers predict HP's move could drive a further round of price cuts from other manufacturers keen to stake their place in the lucrative telco space.

The rack 'em and stack 'em servers are tailored to applications like Web-hosting, ecommerce and as dedicated application servers.

According to HP, more than 40 per cent of its business-to-business revenue comes from or is related to the service provider or application service provider sector. ®

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