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Technology Stocks : Compaq

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To: profile_14 who wrote (91087)5/6/2001 1:27:24 PM
From: Elwood P. Dowd  Read Replies (3) of 97611
 
Intel, Compaq to announce new server
Tech giants beat rival RLX Technologies to the punch
By Janet Haney, CBS.MarketWatch.com
Last Update: 1:06 PM ET May 6, 2001




LAS VEGAS (CBS.MW) - Compaq Computer and Intel plan to announce a savvy server system on Monday to meet IT customers' growing low-power consumption needs.

"We are announcing a new metric for server choice -- transactions per watt per square foot."

Mary McDowell,Compaq


The announcement will come one day before rival RLX Technologies plans to roll out a similar product using Transmeta microprocessors, according to a report from the Financial Times.

Compaq (CPQ: news, msgs, alerts) will use Intel's low-voltage processors as part of its upcoming hyperdense server architecture, codenamed QuickBlade. It's expected in the second half of the year, the companies said.

The new product will allow customers to optimize floor space and accommodate more servers in data centers. It will also provide better performance and dependability. Low-power consuming microprocessors are used in many Web site hosting and e-business applications.

"We are announcing a new metric for server choice -- transactions per watt per square foot," said Mary McDowell, senior vice president and general manager of Compaq's industry standard server group.

The companies' combined technologies support error correcting code, memory protection and expansion, as well as existing industrywide development tools.

Intel (INTC: news, msgs, alerts) and Compaq will make the announcement at the NetWorld+Interop conference in Las Vegas, an event that focuses on network infrastructure for businesses. Intel Chief Executive Craig Barrett will deliver a keynote address on Tuesday. During his talk, Compaq CEO Michael Capellas is expected to join Barrett.

This is Santa Clara, Calif.-based Intel's first design win for its low-power consuming microprocessors, which compete against Transmeta. Intel denied the timing of the announcement was designed to steal RLX Technologies' thunder.

On Friday, Compaq shares rose 10 cents to close at $17.50 and Intel added 48 cents to $30.88.

Janet Haney is a reporter for CBS.MarketWatch.com in San Francisco.
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