Microsoft and Intel have developed a minimalist Windows NT server appliance for small businesses, writes Dominique Deckmyn.

The two companies demonstrated a prototype at the Windows Hardware Engineering Conference (Winhec) in Los Angeles last week.

Microsoft president Steve Ballmer showed off the dinky device while delivering his Winhec keynote speech.

Microsoft's stab at the thin server market is based on Windows NT Embedded 4.0, first announced in 1998. NT Embedded was initially developed for use in devices such as routers or industrial controllers, and is a 'building block' version of NT, enabling systems designers to implement only those NT components needed for a specific system.

The appliance will offer basic server functions, such as file and print sharing and Internet connectivity, but is not intended to host applications.

It will come without a screen or keyboard. Microsoft claims users will be able to set it up and manage it from a web browser running on any networked PC in as little as 30 minutes.

Although the prototype demonstrated at Winhec was jointly developed by Microsoft and Intel, the partners said the devices would also be sold by third parties.

The first appliances are due to hit the market this summer, and cost less than $2,000.