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IBM Aims Low-Cost Unix Servers At SMBs: Page 2 of 3

"While Linux is doing very well in handling network loads, it's still not being deployed for business logic kind of applications," he said.

The p5-520 is a one- or two-way system running a 1.65GHz Power 5 chip, while the two- or four-way p5-550 runs either 1.5GHz or 1.65GHz processors.

Both, said Freund, are aimed squarely at Sun. "Our first p5 launch in July targeted HP," said Freund. "Now with that same technology, we dropping the price and taking it to Sun."

According to IBM's benchmarking claims, the p5-520 is 20 percent faster than a similarly-priced AMD Opteron-based server from Sun.

While research firm IDC's most recent server sales number put IBM at the top of the pile with almost a third of the global market, Sun continues to lead rivals, including IBM, in the Unix server space.