A horizontally scalable arrangement of computing and storage resources, including interconnections and interoperations, allowing configuration of various ratios of server capability to storage capability through a flexible and reconfigurable blade organization. External data communications are interfaced to two separate internal communications networks through a fixed set of switching resources, the switching resources being independent of the server and storage blades, one internal communications network for data flow to and from storage elements, and another internal network for data flow to and from server elements. Both internal networks are used for data flow between server and storage elements. The integrated switches reduce the number of cables in the system by providing aggregation and distribution of data. Signal processing resources are distributed with each server element, allowing efficient deployment of Internet applications without the need for specialized signal processing server platforms such as voice recognition servers, video compression servers, etc.