Mac OS X Server 10.7 will ship with the Lion client, dramatically lowering the cost of Apple's server software, which currently costs $500, according to new information Apple reveal last week, when the company released a beta to developers. Offsetting the server's price drop is the fact that Lion will no longer come with Rosetta to run PowerPC applications, which may force some users to buy new software. Apple's press release said that the Mail 5 application in the Lion client adds support for Microsoft Exchange 2010.

According to ZDnet, Apple is also dropping support for the first generation of Intel-based Macs, including some Xserve models. ZDnet said that Apple's developer preview notes indicated that an Intel Core 2 Duo processor or better is required, which means Macs and Xserves with Core Duos are not supported. (Apple discontinued selling the Xserve last month.)

New Mac OS X Server features include the ability to share files with iPads via WebDAV. Apple also said that "file sharing is simpler than ever" using Wiki Server 3, a new major new version of Mac OS X Server's group collaboration tool.

Lion Server adds a new administration tool called Profile Manager for setting up Apple clients: Mac OS X Lion and iOS devices. "It also integrates with your existing directory services and delivers automatic over-the-air profile updates using the Apple Push Notification service," according to Apple. There's also a new, easier setup procedure.

However, Apple didn't say whether it will drop any of the several dozen services now in Snow Leopard Server, such as the ability to function as a Primary Domain Controller (PDC) for Windows clients.

Users will install Lion Server using the same installer app as the client, using the Customize option, according to Macworld.