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November 24, 1995

INTEL TO DELIVER P6 INTERNET SERVER TO OEM CUSTOMERS NEXT YEAR

By CBR Staff Writer

Intel Corp plans to deliver a $10,000 Internet server sometime next year, according to top Intel executives, although insiders do not expect Intel to sell its own brand into the retail chains. In a forward-looking statement of the company’s strategy, Frank Gill, Intel’s senior vice-president and the chief of Intel’s OEM systems division, said, We’re developing an Internet server for small and medium-sized companies. Next year I’d expect an Internet server to be on the market at low prices, say under $10,000, one you’ll be able to buy from Internet access providers. Gill first talked of the low-cost, low-end Internet server due for release sometime in 1996 at the American Electronics Association’s annual technology conference. Intel confirmed that it had been considering the technology for some time but expressed doubts that Gill’s revelation was much more than a technology direction. The product will almost certainly be sold to OEM customers rather than as a complete branded package, and at a price that they can pass on at around $10,000. We don’t generally compete in branded areas, the company said. It is uncertain, too, exactly what it is that Intel plans to offer. Will Intel provide much more than a Pentium Pro server with loads of memory, a fast Ethernet board and an assortment of bundled software such as Microsoft Corp’s Windows NT and Netscape Communications Corp’s recent discounted server software, or will it be different?

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