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COMPUTERS Server Makers Sharpen Their Focus On "Blade' Market.(A)

Investor's Business Daily

| April 04, 2001 | COPYRIGHT 2001 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

By Sheila Riley

Investor's Business Daily

Blades are poised to cut a wide swatch in the server market.

What, you don't know about blades? Well, they're an emerging type of low-endserver. They're roughly book-sized, about 6-by-9 inches and 3/4 inch thick. They're rack-mounted.

By the only estimate that seems to be available, server blade sales aren't exactly razor-sharp. Annual sales are running at less than $60 million, says market research firm International Data Corp. And IDC estimates sales at less than $1 billion even three years down the road.

Why, then, are Sun Microsystems Inc. and Intel Corp. bringing server blades to market? And why are the likes of Hewlett-Packard Co., IBM Corp. and Compaq Computer Corp. rushing to join them?

Because with server blades, businesses need less of two key items: space andelectrical power.

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