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To: Glenn Perry who wrote (2771)	6/1/1998 12:32:00 PM
From: killybegs	Read Replies (1) \| Respond to of 17679

Micronet acquisition looks good in light of this forecast by Dataquest::: GartnerGroup's Dataquest Forecasts Explosive Growth for Emerging Thin Server Market SAN JOSE, Calif.--(BUSINESS WIRE)--June 1, 1998--A new type of server, called a thin server, that looks more like an appliance than a PC is gaining momentum in the market and experiencing a boost in revenue, which is forecast to grow from $1.1 billion in 1997 to more than $16 billion by 2002, according to Dataquest, a unit of Gartner Group, Inc. (NASDAQ:GART - news). Dataquest analysts said the worldwide thin server market will grow 79 percent in 1998, with revenue projected to surpass $1.9 billion. ''The strong growth rate for revenue shows that this new market is growing out of its embryonic states,'' said James Staten, industry analyst for Dataquest's Servers and Advanced Systems programs. ''Device-control servers, such as print servers, which accounted for more than nine out of every 10 thin servers shipped in 1997, will account for less than 21 percent of revenue by 2002, as higher-priced thin servers, especially network-attached storage (NAS) products, begin to ship in significant volumes.'' Thin servers designed to meet the specific needs of small businesses are projected to show strong growth as revenue is forecast to reach nearly $85 million in 1998, a 282.5 percent increase over 1997 revenue of $22 million. A small business thin server is a multifunction thin server providing Internet service for a small business or workgroup. These devices primarily include Internet access, firewall, HTTP, and e-mail. ''The small business market and the emerging storage-area network concept will play key roles in the growth of the thin server market, as these will serve as the proving grounds for these appliance-like devices in the near future,'' said Mr. Staten. ''For vendors in this space, 1998 will serve as a springboard, but one that will require significant marketing weight as user awareness of these products remains very low.'' Dataquest defines a thin server as a specialized, network-based hardware device designed to perform a single or specialized set of server functions. It is characterized by running a minimal operating architecture, and client access is independent of any operating system or proprietary protocol. The device is a ''closed box,'' delivering extreme ease of installation and minimal maintenance, and can be managed remotely from a Web browser.