Cobalt Networks Inc has announced version 2 of its CacheRaQ, a low-end rack-mountable thin server that works as a network cache and filter. CacheRaQ 2 complements high-end caches like those sold by Network Appliance Inc, the company says, although executives will admit that a closet full of CacheRaQs offers comparable performance to some of NetApp’s much more expensive systems. Maybe NetApp should start to worry; Cobalt has also introduced network-attached storage in a rack-mountable form factor.

Most famous for its translucent indigo Qube and its loyalty to Red Hat Linux, Cobalt has been addressing the small and medium enterprise and ISP markets with vigor over the last few years. VP of business development Mark Orr says the Qube has been particularly successful in Europe and Asia, where space constraints limit the use of wiring closets, while the rack- mountable appliances have been a great success with North American ISPs.

The company reports excellent sales through the web, often to the unlikeliest of places. We’re market leader in Outer Mongolia, says Orr proudly, between that and our success in Nepal, we think we’re really onto something, adds president and CEO Stephen DeWitt. Jokes aside, regional markets are no bad thing to have, especially not when coupled with strong word-of-mouth and the backing of devoted Linux users in the USA.