Gateway releases new low-end server

Gateway has begun selling its new 930 Series servers, a low-end dual-processor model for small businesses needing to share files or run e-mail and basic databases. The system uses Intel's new Pentium III "Tualatin" processors running at 1.13GHz and 1.26GHz, chips that consume less power by virtue of their smaller size compared with previous Pentium IIIs. The system has a starting price of $1,599, but a more typical configuration with a faster processor and more memory and storage costs $4,599.

Gateway has long tried to gain a better presence in the market for servers, the networked computers that boast more power and profit than PCs, but the company hasn't succeeded in gaining over rivals such as Dell Computer, Compaq Computer, Hewlett-Packard and IBM.