New IBM servers go head-to-head with Dell

IBM has launched two additions to its Intel-based server line and has positioned the products as rivals to traditional low-cost...

IBM has launched two additions to its Intel-based server line and has positioned the products as rivals to traditional low-cost leader Dell.

The x235 server will start shipping to customers in the USA and Europe by the end of this month at a starting price of $3,724 (£2,500). This price includes a 2.2GHz Xeon processor, 512Mbytes of memory and an 18Gbyte hard drive. Another configuration with two 2.2GHz Xeon chips, 2Gbytes of memory and three 18Gbyte disks will cost $7,767 (£5,300).

The larger x255 server will start shipping this week and can support up to four Xeon chips and 880Gbytes of internal storage. An x255 with one 1.4GHz Xeon and 512Mbytes of memory will cost $7,199. This price does not include an operating system or hard drives, the spokeswoman said.

IBM claims the x235 pricing stacks up well against Dell for Intel server pricing. The company compared its $3,724 price for the x235 to Dell's PowerEdge 4600 server with the same basic configuration that costs $4,347.

Dell lowered the prices on the 4600 last week, ahead of the IBM announcement and offers a $400 discount on several configurations of the PowerEdge 4600.

A Dell spokesman said he was "flattered" that IBM would pick Dell for price comparisons and added the company's direct sales model allows Dell to make these type of price adjustments as it sees fit.

The new IBM servers are targeted at mid-size customers. They support both Microsoft Windows and the Linux operating systems.

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