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December 24, 2004

RLX Technologies drops blade servers for software

RLX Technologies, who were the first to offer blade servers, to help cut down on power consumption and unit density in datacenters, have suddenly announced plans to entirely drop their server arm, and instead focus on selling its Control Tower software management software.

According to CNet, in Blade pioneer RLX gets out of servers:

The hardware market is notoriously difficult on start-ups, however, and RLX's sales never took flight. The company debuted during the massive downturn in IT spending. Meanwhile, well-heeled competitors like Hewlett-Packard, IBM, Sun Microsystems and Dell began to create their own blade servers and management tools.

Sales of RLX systems were also initially hampered by the fact that it used Transmeta processors, though it subsequently shifted to Intel chips.

The decision to get out of hardware is relatively sudden. The company announced a new line of servers in November.

Posted by brian_turner at December 24, 2004 02:41 PM

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