Deliberate attempt to cause market confusion?  From Redmond?  That would never happen.

Over the weekend, I received information about what appears to be the new Microsoft server product recently preannounced by CEO Steve Ballmer.

Steve revealed the new software during a Feb. 24 meeting with financial analysts. Stupid me, I didn't make the competitive connection: IBM's Lotus Foundations. Windows Server 2008 Foundation and Lotus Foundations target the same market segment: small businesses. Oh, yeah, IBM's server appliance runs Linux.  According to the channel marketing/promotional material I received: "Windows Server Foundation is an alternative to running open source (Linux) software."

Apparently, Microsoft already has salespeople promoting the new software--and there already is some small business confusion about Foundation versus Foundations. It's a tried-and-true strategy for Microsoft, which has used similar naming before.  ...

Microsoft has good reason to confuse customers. Lotus Foundations is an affordable Small Business Server alternative. SBS is a more managed approach, while Foundations, being an appliance, is more plug and play. ... Based on information available to me, I must regard Server Foundation as a competitive response to Lotus Foundations and other Linux server software.
The Lotus Foundations team isn't exactly standing still.  More scoop about Foundations and its new releases coming soon.

Link: Microsoft Watch: Microsoft Readies Windows Server 2008 Foundation > (Thanks, Caleb)

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