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Reducing the power consumption while maintaining the response time constraint has been an important goal in server system design. One of the techniques widely explored in the literature to achieve this goal is Dynamic Voltage Scaling (DVS). However, DVS is not efficient in modern systems where the overall power consumption includes a large portion of static power consumption. In this paper, we aim to reduce the static power consumption by Dynamic Power Management (DPM) with sleep model in addition to DVS. We propose a smart PowerSleep power-saving scheme, where a procrastination technique is adopted to carefully aggregate jobs to reduce the overhead of transitions in and out of the sleep mode. We also observe that PowerSleep might not always be a good choice due to the mode transition overhead when the server utilization is high, where instead we use PowerIdle power-saving scheme with DVS only. By modeling the system with M/G/1/PS queuing model and further extensions, we present how to minimize the mean power consumption of the server under the given mean response time constraint for both power-saving schemes. Simulation results show that our smart PowerSleep scheme significantly outperforms the simple power saving scheme which adopts sleep mode.