Microsoft has confirmed that Hewlett-Packard's MediaSmart boxes, which run Windows Home Server, are being discontinued at the end of the year. HP has also told Microsoft that it has no intention of developing products that run Windows Home Server 2 (codenamed Vail). Read the whole story
Make perfect sense from HP's perspective, assuming they are planning to compete in the same market segments, this can reduce their cost considerably enabling them to offer more competitive alternatives. However, one question which do comes to mind is, will at some point in future, MS will start thinking about building/marketing their own server products to go along with their server end OS?