Palm Acquisition Leads to HP Pulling Out of Windows Home Server Market - Leaves Vail Lonely

HP says that due to their relatively recent purchase of Palm, they'll be switching their business priorities away from their HP MediaSmart Server range. They'll sell the rest of their inventory of EX490 and EX495, support their customers through the rest of their support periods, then have the plug completely pulled. HP's MediaSmart development team is already working on further development of WebOS devices for 2011. This move is of course a blow to Microsoft's plan to deliver Windows Home Server "Vail" to customers as more than likely they'd been banking on HP's support through the future (they've been partnered with HP through the release and launch of the MediaSmart Server in 2007.) Microsoft responds to this news with promises of support for Vail from Tranquil PC, Acer, and "many System Builders."

HP hasn't stated that their move has anything to do with Microsoft's recent move to drop drive extender from their home servers – more than likely lower than expected sales more than likely had more to do with the situation than they let on. HP is stressing the fact that their move only affects the consumer HP MediaSmart Server line, and nothing else!Microsoft's released the following statement in reply:

You may have seen some blogs posts about HP's decision announcing the retirement of their MediaSmart Server line, which includes Windows Home Server. As such, HP has told us they do not plan to provide a platform for Windows Home Server code name "Vail". HP has told us they will continue to sell the existing version of MediaSmart Server through the end of the calendar year 2010 and will honor service and support agreements.

This news is in no way related to recent announcements about feature changes in Windows Home Server "Vail."

Microsoft continues to work on delivering "Vail" to our customers. We are working very closely with our partners such as Acer, Tranquil and many System Builders to bring the best solution to market.

From our partners:

• "Vail will have a big impact on the home media environment, providing an easy streaming and seamless digital file sharing experience for consumers, and Acer is excited to be alongside Microsoft delivering on this goal" says Gianpiero Morbello, Acer Group Corporate Vice President Marketing & Brand.

• "We are entirely committed to the future of Windows Home Server V1 and V2." says D J Thompson, Managing Director of Tranquil PC, "We will also ensure that there is a suitable transition path from V1 to V2 for our existing and new clients."

HP and Microsoft have a long-standing strategic relationship across both consumer and commercial markets and will continue to work together moving forward.

[Via We Got Served]