Rackable Systems Cueing Up To Challenge Server Leaders Dell, HP; Upstart Getting Noticed; Company combines own designs with commodity components to stand out.(INTERNET & TECHNOLOGY)

Byline: KEN SPENCER BROWN

For years, the server market has been shifting to the Chicken McNuggets approach to technology -- "parts is parts," as the old TV commercial put it.

Servers are increasingly seen as commodities, with price being the only big selling point. But Rackable Systems looks to take a different tack.

Though the 3-year-old San Jose, Calif., firm uses off-the-shelf components, it's betting that the right design touches can set its Intel-compatible server line apart from a sea of look-alikes. Think of it as the industry's chicken cordon bleu.

"We unabashedly admit that our Intel (chips) are the same as Dell's," said Rackable's chief, Tom Burton. "The question is, how do you differentiate yourself?"

Rackable appears to have found the right formula. Its unique product features fetch a premium, and the company's now one of the fastest growing server makers. Sales for the privately held firm more than doubled last year to about $53 million and are on track to more than triple this year.

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