Software maker Inktomi Corp. Tuesday released the latest version
of its Traffic Server®, but with a twist -- the revised caching
product supports the much ballyhooed Linux operating system.
The original product, licensed by such clients such as America
Online Inc., Excite@Home and Merrill Lynch, was designed to reduce
massive congestion over the Internet and increase network
efficiency. Already impressive for its ability to scale beyond a
terabyte of data, Traffic Server 4.0 features even more processing
power than its predecessors as well as increased security
The product upgrade is a price/performance one-two
combination for companies that have adopted Linux, an increasingly
popular operating environment.
Ed Haslam, chief strategist, Network Products Division at
Inktomi, said the development broadens his firm's reach in an
enterprise market that is quickly evolving.
"Supporting the widest range of platforms and data formats,
Traffic Server software is optimized for both enterprises and
service providers seeking to reduce bandwidth requirements,
accelerate network performance and deploy a variety of edge
services," Haslam said.
Such a promising product announcement as Tuesday's inclusion of
Linux would seem to be icing on the cake for Inktomi's stock
performance. But its very niche has made it susceptible to the same
lumping other tech stocks have been taking from leery
Despite reporting pro forma earnings of 7 cents per share as
opposed to analyst estimates of 5 cents per share, Inktomi's stock
treaded perilously near its 52-week-low of $21, selling for $24.25.
Sales for Inktomi also sailed to 78.6 million from $27.1 million
with the addition of customers. Earnings for fiscal year 2001
ballooned to 29 cents per share up from fiscal year 2000's 10 cents
Inktomi, who claims it owns 50 percent of the caching product
market in addition to hosting one of the hottest search engines in
the high-tech sector, should be in good position going forward in
spite of its flagging stock price.
Just last week AT&T WorldNet tapped Inktomi as its commerce
service provider for Market Square, the newly redesigned online
shopping service. These services now use the Inktomi Commerce
Engine and provide AT&T WorldNet Service customers with access
to millions of products and shopping tools for an easier, more
complete online buying experience.
But adding Linux to the Traffic Server's already impressive
phalanx of operating systems, including Solaris, Windows 2000,
HP-UX, DEC, Irix and others, shows that Inktomi is dedicated to
open-source standards, similar to the way IBM Corp. has readily
embraced the technology for its eServers.
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