IBM on Monday introduced a new line of Linux servers intended to compete with entry-level Unix platforms from Sun Microsystems and Hewlett-Packard Corp.

"We have given users of Linux and those who have made the commitment to move to Linux a server of their own," says Elaine Lack, director of marketing and strategy for Linux on Power. "This is a system designed to run Linux at entry-level prices while providing enterprise-level performance."

The eServer OpenPower 720 will be available Thursday starting at $5,000 for a two-way system. The server is based on IBM's Power5 microprocessors running at either 1.5 GHz or 1.6 GHz.

Lack says the new server is part of large investment IBM is making in Linux. "Linux is growing incredibly fast and really maturing, allowing customers to use Linux with much more mission critical workloads," she says.

The OpenPower servers are offered with a virtualization option beginning in the fourth quarter that will have a planned price of $2,000, Lack says. The servers support Novell SuSE Linux Enterprise Server 9, and Red Hat Enterprise Linux AS 3 Update 3.