Novell chopped the price of its Groupwise messaging product last week in a bid to battle it out against Microsoft and its rival product Exchange.
According to Novell, a Groupwise system with a Netware Loadable Module message server for 25 users previously cost u7,060 for a small business.
Next month, when the revised price per user cost structure takes effect, it will cost u2,310. In comparison, a 25-user licence for Exchange with Internet access costs about u2,550.
Rana Mainee, consultant for market research firm Inteco Corporation, said: 'Groupwise XTD is due to come out by October so they are lowering the price on Groupwise 4.1 to make sure it doesn't nosedive in the meantime.'
Phil Cross, Microsoft Exchange product manager, said: 'They are obviously reacting to Exchange and using pricing as a tactic to increase their profile but it can't help dealers' margins.'
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