Microsoft announced Windows Server 2008 Foundation. It seems that Microsoft is feeling the pressure from Linux and other free operating systems, and decided to go with a lower priced server offering.

Personally, I think this is an excellent idea. This will help mISV, like me, to get Windows Server. There are a lot of entry-level servers under $500. Why should we pay the same amount or more for the OS? That's why Linux has been trumping Windows in the server room.

Official Press Release

Windows Server 2008 Foundation Home Page