Server technology is moving away from private networks to the Internet, according to Hewlett-Packard.
Enterprises are facing challenges such as power and space constraints, lack of IT staff and heightened security requirements, so the ability to control infrastructure from a single point, such as via the Internet, is the future of the market, said John Lynch, market development manager, server appliance for HP.
"The server appliance market is also moving towards products that are dedicated to a single function. People don't want different applications running on their servers."
Industry analyst IDC expects the appliance server market to expand to $US11.6 billion by 2004.
According to HP, market forces driving this charge include outsourcing, Web hosting, application service providers (ASP) and Internet data centre developments.
Lynch said that, increasingly, large companies are building their own Internet data centres and need server appliances that can be quickly installed and easily configured.
HP recently announced the development of 21 HP-branded server appliance products ranging from Web-hosting to Web caching, streaming-media caching, traffic management and virtual private networking (VPN).
The line is based on Intel's NetStructure product technology.
The products will be staggered in their release, with all available in Australia by June 2001.