IBM to sell new server with Compaq

NEW YORK: International Business Machines Corp., the world's largest computer

maker, said on Wednesday it will sell the first data storage product to come out

of a $1 billion alliance it has with Compaq Computer Corp., the world's No. 1

personal computer maker.

The IBM Modular Storage Server, a low-cost storage device will be available

on Sept. 29, starting at $10,500 with a typical 200-gigabyte version selling for

$70,000.

It was the first product to come out of the alliance announced on July 6. IBM

and Compaq had said they will develop interoperable storage products, hoping to

gain market share within the high-margin storage market currently dominated by

EMC Corp.

The companies said at the time of the announcement they expected the

joint-sales agreement to bring "significant" sales to both companies

starting in the fourth quarter.

IBM also said it has completed training to its storage sales force, storage

networking architects, and many of its business partners, that will allow them

to help customers use open storage networking solutions using both IBM and

Compaq products.

(C) Reuters Limited 2000.