Microsoft runs cannibalization risk with low-end server push

Microsoft runs the risk of cannibalizing some server sales with the release of Windows Server 2008 Foundation Edition, a low-end version of the server operating system that will ship installed on servers that cost as little as US$500. But the potential boost of expanding the market for low-end servers outweighs the risk of losing some sales of more expensive versions of the operating system, a Microsoft executive said Wednesday.