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Server Specs: Liebert raises prices on data center infrastructure

Liebert raises prices on data center infrastructure; Rackable buys Terrascale; Intel expected to cut jobs; APC CEO retires.

Liebert raises prices on data center infrastructure

Columbus, Ohio-based Emerson Network Power, announced a price increase in reaction to higher commodity costs. The increase affects Emerson's Liebert brand of products and averages 5.5%.

"Current trends in rising material costs are significantly impacting most of the components used in the equipment we manufacture." said Scott Dysert, president of Liebert North America in a statement. "We have been able to minimize the impact of these rising costs on our customers through aggressive negotiations with raw material suppliers and continuous efficiency improvements."

Liebert competitor American Power Conversion has also confirmed rising costs in its processes.

Rackable buys Terrascale

Rackable Systems has agreed to pay $38 million to buy Terrascale Technologies, which sells software designed to offer fast I/O between servers and storage.

Milpitas, Calif.-based Rackable is known for building data centers based on DC-powered servers, rather than the traditional AC power connection. Terrascale provides its customers with clustered storage systems that, it says, improve the ability to manage and read storage data.

With its purchase of Montreal-based Terrascale, Rackable hopes to be able to offer its customers better throughput between servers and storage.

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Intel expected to announce job cuts today

Chip giant Intel Corp., is expected today to announce job cuts of up to 10% of its workforce, or 10,000 people, according to multiple reports.

Analysts have predicted for months that Intel would be slashing 10,000 or more jobs in a bid to get the company lean to compete better with its main rival, Advanced Micro Devices, Inc. AMD has made inroads in its battle with Intel, the world's largest microchip manufacturer. Research firms have said that AMD has managed to grab about 25% of the server chip market in just a few years.

Intel is still the leading chipmaker by far and rolled out new dual-core server processors this summer to try to build on its lead. Intel and AMD are both coming out with quad-core chips in the next year: Intel by the end of this year, and AMD early in 2007.

CEO Paul Otellini could announce the massive layoffs during a Webcast to Intel employees today, a report in Bloomberg said. The announcement would follow the cut of 1,000 management jobs in July, a sign that the reorganization of the company would spare no one.

APC CEO retires

American Power Conversion has announced the retirement of Rodger Dowdell as president and CEO of the company.

The West Kingston, R.I.-based power supply company has named vice president Rob Johnson interim president and CEO and will start a search for Dowdell's permanent replacement. Dowdell, who has been CEO for 21 years, will remain on the board of directors as its non-executive chairman.

Dowdell's unexpected retirement comes as the company's stock has dropped amid rising earnings but even faster rising costs.

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