IBM releases new entry-level server

IBM aimed at Dell with the release Thursday of a new, low-cost server that IBM claims packs more processing power and storage than similar products from its rival.

The IBM eServer x200VL will come with a 850MHz Celeron processor and a 20G-byte IDE (Integrated Drive Electronics) hard drive. The system was designed to handle general purpose tasks or operate as a department network server. The product pricing starts at US$699, according to a statement from IBM.

Along with the hardware, IBM will also include its IBM Director software for automating diagnostic and repair functions on its servers.

IBM pitted the x200VL against Dell's PowerEdge 500SC product, which costs $706, according to Dell's Web site, with a 800MHz Celeron and a 20G-byte hard drive after a $100 discount for small business buyers.

IBM also announced that its eServer x200 and x220 products will be available with Pentium III-S processors with 512K cache and speeds up to 1.26GHz.

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