Hewlett-Packard Co introduced its slimmest-ever server computer, as the second-biggest computer maker fights competitors such as Sun Microsystems Inc and builds up sales of low-end systems.
The "blade server" is an ultra-thin machine that piles all of the chips and a hard drive onto one board the size of a book, rather than current pizza-box-size models. That lets users put several servers into a smaller space.
Hewlett-Packard is targeting communications customers and big companies that need more servers to manage Web pages and run security firewalls to bar unauthorized access to their computers.
Rivals such as International Business Machines Corp (IBM) and Compaq Computer Corp are also developing blade servers, and the market may reach US$2.9 billion in sales by 2005, Hewlett-Packard said, citing market researcher IDC.
Sun, the server vendor of choice for many communications clients, may be hardest hit, said Mark Hudson, a Hewlett-Packard server-marketing manager. Hewlett-Packard has lagged Sun in systems that run Internet applications and sees the new market for blades as a chance to catch up, Hudson said.
"We didn't do as well in the Internet layer, and this allows for the playing field to be altered in our favor," Hudson said.
Hewlett-Packard shares rose US$1.09 to US$22.58 yesterday. They've dropped 31 percent in the past year.
Servers that use Intel Corp's 700MHz Pentium III processors and run the Linux operating system will be available next month. Models using Microsoft Corp software are due out next quarter and some with Unix later in the first half.
The devices cost as little as US$1,925, Palo Alto, California-based Hewlett-Packard said.
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