To: rupert1 who wrote (176289 ) 11/1/2005 8:18:43 AM From: rupert1 Respond to of 275872 This is a DJ comment on the Fabric7 Systems I posted earlier, in the post to which I am replying. Start-Up Develops Low-Cost Servers For Complex Work By DON CLARK Staff Reporter of THE WALL STREET JOURNAL November 1, 2005; Page B2 A Silicon Valley start-up is planning a daunting direct assault on the giants of the computer industry. Fabric7 Systems Inc. says it will combine microprocessor chips from Advanced Micro Devices Inc. and high-speed networking technology to create server computers that will compete with high-end machines sold by International Business Machines Corp., Hewlett-Packard Co. and Sun Microsystems Inc. Those systems, which typically use proprietary chips and the Unix operating system, run many companies' most important operations. By contrast, most servers based on x86 chips from Intel Corp. and AMD are used for simpler jobs such as running Web sites. But Sharad Mehrotra, Fabric7's chief executive, argues that such chips and associated software are finally ready to take on the biggest computing chores -- at a much lower price. "This is almost the perfect storm type of opportunity," Mr. Mehrotra said. The chances of getting swamped are high. Indeed, very few entrepreneurs have tried to introduce general-purpose computers in recent years. For one thing, many customers have long-term relationships with big suppliers and aren't eager to bet on start-ups. Competition is fierce, especially for x86 servers. Where those machines typically use one or two microprocessors, Fabric 7 is taking on the high-end Unix servers and mainframe systems that use eight to 128 proprietary chips. Executives at IBM, Sun and other companies have discussed constructing such systems from x86 chips. But Fabric7 believes it has a head start. The company, based in Mountain View, Calif., plans to begin selling servers this week with as many as eight AMD Opteron chips, each with the circuitry of two microprocessors. Fabric7 says its software and mainframe-style switching technology allows customers to use all 16 processors at once or quickly shift a machine among various two-, four- or eight-processor combinations. An AMD spokesman confirmed that the company is working with Fabric7. Such flexibility is a big draw in data centers, where companies are trying to find more efficient ways to use extra computing capacity, Mr. Mehrotra says. At $42,000 to $175,000, Fabric7's products also are about a fifth of the cost of comparable Unix machines and mainframes, he adds. Mr. Mehrotra, a Sun veteran, previously led a networking start-up called Procket Networks Inc. that raised $300 million before Cisco Systems Inc. purchased it in 2004. Fabric7's chief hardware designer, Tom Lovett, previously designed x86 servers for Sequent Computer Systems Inc., which IBM bought in 1999. Fabric7 has raised $32 million from venture capital firms.