Microsoft has released its new server software designed for home use. On the market for US$200 the streamlined software requires no video card, no keyboard, no monitor nor mouse.

It is connected to the home network by an Ethernet cable, and is controlled by means of a separate software application that runs in a browser on the other computers on the network. Users installing the software get a free domain name on the Internet through Microsoft's Windows Live services, which allows a maximum of 10 users logging in remotely to connect with the shared folders at home.

In a Microsoft press release, the WHS is designed to be extremely simple to set up and run. Once it is running, it will allow families to connect and share their digital media and documents, back up files automatically, and stream multimedia to the networked computers or to any home-theatre setup one might have.

It automatically backs up XP and Vista-based home computers each night, provides a central place to organize digital documents and media, and includes a free Windows Live Internet address to access the home server from anywhere from the Internet.

Hewlett Packard is releasing an HP MediaSmart Server, running WHS, which will be available in January.