SiliconValley.com: Linux Server Start-up Gets Funds

“In a rarity for Silicon Valley these days, a start-up plans to
announce today that it plans to go into the computer hardware
business.

“Key Research, which has 15 employees in Palo Alto, has received
$12.5 million in venture funding to make 64-bit servers that run
the Linux operating system. Key’s founders include three former Sun
Microsystems engineers who felt there was a big opportunity in
connecting a bunch of low-cost servers to handle the same tasks
performed by supercomputers today.

“The small company will be going up against big names like IBM,
SGI and Hewlett-Packard. Dell Computer is also expected to enter
this segment of the market this year. But Key’s team believes it
can come up with a more cost-effective server…”

Complete
Story