Seagate, Cobalt Partner to Provide Linux-based Solutions

Computer disk drive maker Seagate
Technology, Inc. Monday formed a strategic partnership with Cobalt Networks, Inc. to build a suite of
Linux-based server appliances for Internet and Application Service Providers.

Fresh from its drive to privatize, Seagate (SEG)
intends to work with Cobalt (COBT)
to deliver ISPs and ASPs storage and data protection services.

The scalable data protection system enables ISPs and ASPs to generate
incremental revenue through re-selling storage and data protection
applications to small and medium-sized business customers.

Tom Mulvaney, Seagate senior vice president of Internet solutions said ISPs
could profit from Web businesses need to store data.

“As Web-based applications continue to evolve and drive storage
requirements, the idea of an ISP providing storage as an incremental
service to their small-to-medium sized business customers is becoming more
and more of a reality,” Mulvaney said. “Offering small-to-medium sized
businesses access to their information without interruption and fully
protected is a service all businesses in today’s Internet economy can’t do
without.”

Mulvaney added that its alliance with Cobalt would ability to target ISPs
with the new appliances.

“Cobalt’s strong positioning in the service provider market and their solid
understanding of vending Web-based applications to small-to-medium sized
businesses allowed Seagate to develop ways to better serve ISP customers
through the delivery of storage as an application,” Mulvaney said.

This partnership provides both companies with the ability to deliver
turnkey server appliance solutions. Through the agreement, Seagate is
granted complete access to Cobalt’s worldwide customer base including more
than 1,000 ISPs.

Cobalt plans to leverage Seagate’s established sales and distribution
channels to broaden its sales outlets in an effort to capture marketshare
in the server appliance business segment.

The agreement also provides Seagate the opportunity to utilize Cobalt’s
third party developer program for application development on the Seagate
server appliances.

Applications that will be developed on the Seagate server appliance will
also be available for the Cobalt platform.

Because the Seagate server appliance platform is Linux-based, application
development and deployment will reduce time-to-market for Seagate’s suite
of solutions.

Stephen DeWitt, Cobalt president and chief executive officer, said Seagate
truly understands the potential of the new Internet economy and the value
that Cobalt server appliances bring to their core business.

“As the Internet Service Provider market matures, competition becomes
fierce,” DeWitt said. “Seagate is capitalizing on their storage and data
protection expertise and leveraging Cobalt server appliances to deliver
tools to service providers enabling them to expand their service offerings.”

According to Strategic Research
Corp. the data protection market is projected to grow from $968 million
in 1998 to
$2.4 billion in 2003, according to Strategic Research Corporation.
Seagate’s server appliance solution is well positioned to provide
fast-growing ISPs and their customers turnkey storage and data protection.

Dialtone Internet, Inc. is a
Florida-based data center that provides custom built Linux and NT Web
hosting and e-mail servers for ISPs and ASPs. Al Albarracin, Dialtone chief
executive officer, said its rapidly expanding hosting service means that
the company has more date to protect and store for its clients.

“With this

growth the amount of data to be stored and protected is
increasing exponentially. A large number of our clients ask for a backup
service and we would like to now be able to provide data protection as an
added value service,” Albarracin said. “A Seagate storage and backup data
protection appliance would allow us to respond to these customers. This is
a great example of the kind of ‘appliantized’ applications that are
critical to our business.”

The first Seagate server appliance solution is tentatively scheduled to be
available this summer.