CNET News.com: “Server appliances” threaten manufacturers’ revenues

Thanks to Leo
for this link.

“Compaq debuted some of its new ‘server appliances,’ systems
built around a single goal, like speed or low cost, in a way that
could radically undermine the server business.”

“As previously reported, Compaq’s TaskSmart C-series server is
the first of a coming wave of systems intended to do a specific job
either faster or more cheaply than a general purpose server. The
C-series is specialized for Internet ‘caching,’ a technique that
quickens Web surfing by temporarily storing files closer to

“Other server appliances will be focused on price, in much the
same way that PC makers design low-cost systems for buyers who
don’t need every last ounce of computing muscle for common software
applications. In the server segment, this portends cheap Intel
Celeron processors running freely available Linux operating system

“Such servers could become a problem for manufacturers, if
general purpose server sales start to decline as customers find
they can make do with better-tailored machines. Nonetheless, most
major companies will soon jump into the market, afraid to ignore
perceived demand.”