Compaq in Appliance Business...
A piece @ news.com...
Steve
Compaq tackles server appliance market
By Stephen Shankland
Staff Writer, CNET News.com
June 3, 1999, 12:40 p.m. PT
Compaq Computer is launching a major new product line called TaskSmart, a collection of "server
appliances" specialized for doing one task very well.
The server appliance market is set to proliferate, observers say, and the addition of them is likely to be popular
with some Compaq customers such as small businesses and Internet service providers. Compaq is the first
big-name company to begin getting its feet wet in this market, said International Data Corporation analyst Amir
Ahari.
However, server appliance sales will bite a chunk out of low-end server sales at
Compaq and other companies, "cannibalizing" their server lines, Ahari said. "It's
going to happen. They won't say it, but it's going to happen," he said.
The first TaskSmart machines, due in July with starting prices less than $10,000,
will be dedicated to "caching" Internet information, a process that speeds up the
delivery of Web pages or other information by storing the data closer to the location
of users who need it.
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