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Dell takes edge off server prices

Prices continue to plunge in the market for Pentium-based servers, with Dell announcing that it would cut prices 22 to 41 percent on its PowerEdge servers.

Prices continue to plunge in the market for Pentium-based servers, with Dell (DELL) announcing today that it would cut prices 22 to 41 percent on its PowerEdge servers.

Pentium servers are now being offered at bargain-basement prices since a number of vendors are now beginning to reposition their server lineups around more powerful and more expensive Pentium Pro machines.

The PowerEdge SP with a 166-MHz processor, 64MB RAM and 4GB SCSI is now priced at $5,399, down 22 percent from $6,938.

Dual-processor servers get price cuts as well. A PowerEdge XE server with dual Pentium 166-MHz processors, 128MB of ECC memory, and two 4GB SCSI hard drives is now $10,999, a reduction of 29 percent from $15,496.

A PowerEdge XL server with two 166-MHz processors, 512MB of ECC memory and three 4GB SCSI hard drives with PCI RAID controller was $25,298, but the price was cut 41 percent to $14,999.

The SP, XE, and XL models each include an 8X CD-ROM, an Ethernet 10/100 card, and Windows NT 3.51.

The computer maker says that products for everything from small workgroups to enterprise applications will benefit from the cuts.

In related news, Dell claims they will be the first original equipment manufacturer to ship factory-installed Microsoft Windows NT Server 4 with all new PowerEdge 2100 Pentium Pro servers.