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What Should A Home Server Cost?

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The big unanswered question with Windows Home Server is how much it'll cost you to get one. Dell's cheapest possible Dimension PC meets the Home Server requirements, and features:

Processor AMD Sempron 3400+ (2 gigahertz core) Operating system Genuine Windows XP Home Edition Memory 512MB Single Channel DDR2 SDRAM at 533MHz - 1DIMM Hard drive 80GB Serial ATA Hard Drive (7200RPM) Optical drive 16X DVD-ROM Drive Price $359 Now, for comparison, if Microsoft is smart, a price equal to that of Vista Home Premium at retail the sweet spot at which it will be a good seller is $150 higher than XP/Vista Home, or about $240, making the cost of our fictional system builder Home Server at: Total: $632 With a gigabyte of storage coming to about $400, and some people having hard drives lying all over the place (and keep in mind, external drives work just as well), I'd say $600 for a base Home Server and $1000 for a 1-terabyte Home Server to be right in the sweet spot. Now, the question to be answered in the future is: Can I build a system for less than $390, and buy Home Server elsewhere? If any of my readers want to answer that one, I'd be very interested. Nathan Weinberg writes the popular InsideGoogle blog.

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