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I want to run an smtp server that will distribute email alerts from various servers.

Mike
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Can I setup an smtp server with Ubuntu Desktop?

The short answer is YES.

The longer answer is probably rooted in why you would choose Desktop versus Server. I'm guessing you want the GUI out of the box for ease of administration. For that (and other information on Servers in general and Desktops vs Servers), see Frequently Asked Questions about the Ubuntu Server Edition.

Unfortunately, nothing will save you from the (exim|postfix|sendmail|webmail|doevcot|courrier|spamassassn|clam) configuration and administration. See Setting up an Ubuntu System as an Email Server for details.