IBM threw its hat in the sub-$1,000 server ring with its release of the eServer x200VL, an entry-level server priced at $699.

Similar server offerings are already available from Dell and Sun Microsystems. Like those products, the eServer x200VL is designed for small businesses looking for an entry-level server. The eServer x200VL comes with an 850 MHz Intel Celeron processor and 20 GB of IDE storage. It offers native support for Linux and Microsoft Windows, in addition to other operating systems. The server comes with IBM Director, an intelligent system management program that has Project eLiza self-diagnosing and self-healing technologies. Technologies from Project eLiza, IBM's program aimed at creating a world of self-managing systems and technologies, featured in the eServer x200VL include predictive failure analysis, which enables a server to self-diagnose potential problems and then alert IT staff; software rejuvenation, which can automatically predict and repair software problems before they occur; and IBM ServerGuide software, designed to simplify system set-up and installation. IBM at this time also announced that its eServer x200 and x220 are now available with the new Intel Pentium III-S processors with 512 KB cache and a speed of 1.26 GHz, thus creating what Big Blue believes to be the most powerful line of entry-level, small-business servers currently available.