Servers Are Solid

Cisco cuts a deal with Intel, Bill Gates gives it away, and more.
Joseph RadiganFebruary 6, 2001

Serve it Up

Market research firm Dataquest says a fourth quarter surge in shipments of server computers lifted the server market’s sales totals for all of 2000.

In the last three months of 2000, worldwide server shipments totaled 1.1 million units, up 21 percent from the fourth quarter of 1999, according to Dataquest, which is a Gartner Group subsidiary. For the year as a whole, global sales rose 14 percent.

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In the U.S. alone, fourth quarter sales rose 32 percent.

Sun Microsystems and Dell showed the strongest unit increases among the top-tier vendors in 2000. Sun’s sales grew 61 percent, while Dell’s sales rose 42 percent. Compaq led the sector with a 27.1 percent share and surpassed 1 million unit shipments.

Despite the strong sales figures, Dataquest says the long sales cycle for servers will make the next two quarters a critical period for “assessing the impact of the current economic situation on the server market.”

In a separate report, Dataquest says workstation sales grew 11 percent in 2000.

Hot Flashes

Cisco Systems has cut a deal to get high- performance flash memory devices from Intel. The components will be used in cable modems, desktop switches, and low-end routers. The two companies didn’t disclose the pact’s financial terms, but according to UpsideToday, it follows by less than two months an announcement by Intel rival Advanced Micro Devices that it was doubling the amount of flash memory it supplies to Cisco.

Cisco is also busily working with Motorola. The two companies said they’ve hired Yuval Bloch to be president of their Invisix joint venture. Invisix was created in 1999 to develop Internet applications for mobile devices. Invisix also performs network integration for wireless Internet networks.

Bloch is an 18 year veteran of Motorola. Most recently he had been vice president of the company’s Telecom Carrier Solutions Group in Israel.

Win Bill Gates’ Money

Microsoft chairman Bill Gates is matching wits with retail investors in a promotional gimmick designed to raise money for Big Brothers Big Sisters of America.

Microsoft will make a 50-cent donation to Big Brothers Big Sisters of America for each person who enters the stock-picking competition, up to a maximum of $150,000. Contestants have two weeks to pick four stocks and can register at Microsoft’s MSN Web site, although the company says no real investment of funds will be involved. The winners will be selected based on the performance of their stock picks.

A $5,000 cash prize will be awarded to the winners from the first two rounds. The first round winner will be announced on March 6, and the second round winner will be announced on March 27.

The winner of the Grand Finale round will receive $10,000 and will be announced on May 1.

Gates said, “I’m sure I won’t win the contest, but it’s all for a great cause.”

But Bill. You don’t have to win; unless, of course, you’re still upset about Oracle’s Larry Ellison breathing down your back in Forbes’ annual ranking of wealthiest businesspeople.

Bits and Bytes

  • Intel is beefing up its presence in the application service provider market with a marketing program that is targeting Internet service providers and other third-party sales channels.
  • iVita Corp. said it formed a partnership with American Appraisal Associates in which the two companies will help clients value their assets.
  • SAP said on Monday that more than 400 companies worldwide purchased the mySAP Web- based customer relationship management system during the past year.
  • Epicor Software said Dynacast will implement Epicor eManufacturing to automate its manufacturing processes. Dynacast will also take advantage of Epicor’s hosting capabilities. Dynacast provides precision diecasting of zinc, aluminum, and magnesium for the telecommunications, computer, electronics, consumer electrical, and automotive industries.
  • Computer Associates released Unicenter TNG Remote Control Option 5.1, which is designed for remote management of retail E-commerce devices, including point-of-sale kiosks, automated teller machines, and Web-enabled manufacturing equipment.
  • Synygy Inc., which supplies incentive compensation software and services, is moving its corporate headquarters from Bala Cynwyd, Pennsylvania to a 32,000 square foot site in Conshohocken on March 1. The offices will include a briefing center where the company will demonstrate its variable pay programs.