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The "stay at home" server acts as a hub for all the PCs in the home, allowing every computer on the network to stream media and share music, photos, videos and other files.

Microsoft is also touting Home Server's ability to automatically back up XP and Vista-based computers each night, and the ability to remotely access the server through a Windows Live Internet address.

Though

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some have their doubts concerning the viability of Home Server, the software giant clearly feels it's on to a winner with what it believes to be a new product group.

"Digital devices and content are everywhere in our day-to-day lives and they are more important all the time," says Bill Gates, chairman of Microsoft.

"With the launch of Windows Home Server, Microsoft and its partners are creating a new consumer product category that will help people keep their digital media safe and make it easier for them to enjoy it with friends and family."

HP will be the first to employ the technology on its hardware through the MediaSmart Server, which will offer 500GB of storage for £300, or 1TB for £375.

Hear our thoughts on Windows Home Server, and its potential impact on the consumer market in this month's PC Pro podcast, available here.