[email protected] Week: Dell, IBM Punch Into Server Appliances

The market for Internet server appliances, which are
generally rack-mountable “pizza box” servers loaded with
preconfigured applications, has been colonized by
start-ups as Cobalt Networks (www.cobalt.com), NETmachines
(www.netmachines.net), Network Engines (www.networkengines.com) and
VA Linux Systems (www.valinux.com). But now it’s become such a
fast-growing market that the big guns could not afford to ignore it
In a report released last month, International Data
Corp. projected that the worldwide appliance server market will
grow from less than $1 billion in 1999 to $11 billion in 2004.”

“Dell’s new PowerApp line will initially consist of Web server
and caching appliances. The PowerApp.web hosting appliance server
will be available with either Red Hat Linux or Microsoft Windows.
The PowerApp.cache runs Novell’s Internet Caching System. The first
PowerApp appliances are expected to ship in May.”

“Cobalt, meanwhile, will continue to differentiate itself based
on the applications it offers on its RaQ and Qube appliances, says
Kelly Herrell, Cobalt’s vice president of marketing. Cobalt now has
about 100 partners offering.”