Is it possible to create an appliaction that can receive command in SMS form from a remote user to control server also to receive automated SMS alert from the server?I would like to know in term of using GSM modem too
Yes, you can do it. You can do this in many ways. The easiest way is look for "SMS inbound service". In that service you get a phone number to send SMS and you put one URI to callback, when you send a SMS, the service callback to your URI. When your page is called, you can do anything you want, but you need programming skills