The company begins selling a new two-processor, 1.75-inch-thick server that includes management software to enable administrators to control the servers from afar

The model 1221 accommodates two Pentium III processors running at 1GHz, as much as 4GB of memory, two SCSI hard drives, and comes with three built-in 100Mbps Ethernet ports. Prices range from $2,800 for a basic model to more than $7,300 for a system with two 1GHz chips and 2GB of memory.

VA is directing attention toward its "cluster management" software, called VACM, which lets administrators manage or monitor a large bunch of servers in one fell swoop.

In February, VA announced it would lay off a quarter of its staff, about 114 job cuts total. In April, the Fremont, California, company warned revenue would be lower than expected for the third quarter in a row.

VA competes with Dell Computer, IBM, Compaq and Hewlett-Packard, all of which offer comparable rack-mounted servers.

The new 1221 is an improvement over earlier slim, rack-mountable designs from VA that offered less memory and other features. In January, VA cut prices with an improved single-processor 1.75-inch-thick model as well.

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