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The line between the office and the home blurred a little more today as Microsoft unveiled its new Windows Home Server, a streamlined and much simplified version of the server the software giant has been making for businesses.

The server software will be available for consumers to buy for less than $200, or bundled with hardware from manufacturers for between $500 and $800 (Cdn.), depending on storage capacity. The server is what Microsoft calls "headless," meaning it requires no video card, no keyboard, monitor or mouse.

Connected to the home network by an Ethernet cable, it is controlled by means of a separate software application that runs in a browser on the other computers on the network. The system also creates a free domain name on the Internet through Microsoft's Windows Live services, which allows a maximum of 10 users on the road to connect with the shared folders at home.

In what Joel Sider, senior product manager of the Windows Home Server team, calls "a new category of consumer product," the WHS is designed to be extremely simple to set up and run. Once it is running, it will be 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.

The server automatically backs up Windows XP-based and Windows 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 onm the Internet. It also monitors the health and security of home computers and can stream media to other devices in the home, such as Xbox 360.

The WHS software is designed to do most of these things by itself, Mr. Sider said, but a number of third-party software developers are creating applications specially for it, with such things as specialized antivirus protection, backup to external storage systems, set up family websites and blogs, and even a system to control the home thermostat.

Mr. Sider said that the WHS uses many of the elements of the business server, but "has a layer of simplicity" built in.

"There's no network setup required, and not a lot of knobs and buttons," he said.

And as for backup, he said, "One touch is too much — it should just happen."

The hardware is little different than for a basic computer, but it needs a fast Ethernet port and USB ports to handle outboard drives. It requires a processor —Mr. Sider says a Pentium III or later can handle it.

If the server itself has more than one drive, Microsoft has created a new technology called the "drive extender" that will manage all the disks automatically, similar to the usual RAID systems for multiple disks, but much simpler.

The first hardware maker to partner with Microsoft is Hewlett Packard, which will be releasing its HP MediaSmart Server, running WHS, which will be available online at www.hpshopping,.ca in Canada starting Nov. 26 and in retail stores in January.

The MediaSmart Server will be sold in a 500-gigabyte version for $599 and 1 terabyte model for $749 (Cdn.).

Among other manufacturers signed on to support the server are Fujitsu Siemens' SCALEO Home Server 1900, with a 1-TB capacity across two hard drives, Gigabit Ethernet and advanced power management features; Iomega Corp.'s HomeCenter Server, which will ship with one 500GB hard drive; the Tranquil PC T7-HSA Tranquil Harmony Home Server with 500GB and 1TB options.

Others include Velocity Micro, Comtronics, Ace Computers, Advantec, PC Club, Universal Systems Inc., Gateway Inc., LaCie, Seagate Technology and Intel Corp.