Microsoft Corp. is working on two thin client versions of Windows XP to offer a lower cost operating system alternative for users of server-centric computing, people familiar with the company’s plans said.

The Windows XP-based thin clients will cost less than Windows XP Professional Edition, but offer the same management features and availability of a broad array of hardware drivers. The operating systems are being designed to run on low-end PCs that could be used for simple tasks such as data entry and as a way to access server-based applications, these people said.

Microsoft is developing the two releases under the “Eiger,” and “M

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