The Dell Precision T1700 is said to be around 30% smaller than competing systems, allowing the use of a workstation certified by software vendors in situations where space is limited.
Hardware features include an Intel processor, Nvidia or AMD graphics, PCIx Gen 3 slots, and two front USB 3.0 ports.
Prices start at $1399.
The rack-mounting Precision R7610 can be used by up to four users without sacrificing performance, Dell officials claimed.
THe R7610 is certified for use with Citrix XenServer 6.1.0.
Other hardware features include dual Intel E5-2687aW eight-core processors, 16 DIMM slots allowing memory configurations up to 256GB (up to 512GB in future), and an integrated 6GBps SATA/SAS controller.
Both models are available immediately.
"Dell continues to build on our heritage of developing innovative, cutting edge workstation technology by adding the smallest tower and most powerful rack workstation to our Dell Precision portfolio," said Dell's vice president for tablet and performance PCs Neil Hand.
"With increased power, reliability and new virtualisation capabilities, these workstations deliver uncompromising performance, dependability and smart design that engineers and other high-end application users need to be successful."