The PowerEdge 2650 takes up 2U (3.5 inches) of rack space and starts at $2,399 (£1,642) without an operating system but with one 1.8 GHz Xeon processor, 256Mbytes of memory, and an 18Gbyte hard drive.
A high-end version of the system with Microsoft's Windows 2000 server operating system, dual 2.4GHz Xeons, 6G bytes of DDR SDRAM (double data rate synchronous dynamic RAM) and five 36Gbyte hard drives is priced at $16,427 (£11,240), said Darrel Ward, senior manager of rack servers at Dell.
The PowerEdge 2650 is aimed at companies looking for a compact server to handle e-mail, file and print sharing and Web serving. Customers with large clusters of servers for research or data mining have also shown interest in the quicker systems, according to Ward.
The servers also ship with Dell's remote access technology and OpenManage management software. Dell will sell the PowerEdge 2650 with Windows 2000 Server, Windows 200 Advanced Server and Red Hat Linux. The system is also certified to work with Novell's Netware and Windows NT 4.0 operating systems.