Is Microsoft setting its sights on the mid-market?

In what could be a prelude to a new server product for mid-sized businesses, Microsoft announced on Thursday a new bundle that saves such companies up to 20 per cent if they buy a set of three Microsoft programs.

The promotion combines three Windows Server operating system licences with one server licence of the Exchange calendar and email software and a single server licence for the company's Microsoft Operations Manager (MOM) 2005 product along with the right to access the software from up to 50 computers. The package, which will be sold by resellers and on new servers, will retail for about $6,400 - or roughly 20 per cent less than the amount customers pay under standard Open Select licences.

Microsoft said the move addresses a shortcoming in its current licensing structure, in which both smaller and larger businesses can end up paying less than mid-sized businesses.

Steven VanRoekel, director of mid-market solutions for Microsoft's Windows Server unit, said: "The mid-market was typically paying more than the segment above them and the segment below them." At the same time, VanRoekel and others at the software maker said the company is exploring whether to develop products specifically tailored to the mid-market.

The announcement comes as Microsoft prepares for its annual conference for partners, which starts on Friday in Minneapolis.

Analysts said the move is a baby step in the right direction.

Gartner analyst Mika Krammer said: "I think they just wanted to put a stake in the ground however small it may be. It's a complete packaging play. There is nothing here that is built for the mid-market."

Krammer also noted that a customer would have to have needs that just happen to map to exactly what Microsoft is offering in order to really save money with the new bundle.

Microsoft said it is already growing its share of the $231bn that such businesses spend each year on computer software, hardware and services.

Krammer said she does expect that over time Microsoft will try to craft products that are more geared toward mid-sized businesses, noting that IBM has been doing a good job of that for some time.

John Lauer, a vice president in Microsoft's Small and Midmarket Solutions and Partner unit, said: "Customers vote with their dollars, and our solutions are resonating with them, although there is lots more to do."

Ina Fried writes for CNET News.com