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The appliance server maker issued 5 million shares raising $110 million.
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Two new appliance servers, the PowerApp.web 110 and PowerApp.web 120, will be $1,499 and $2,599, respectively, and will be aimed at Internet service providers, managed host companies and other businesses.
The company makes appliance servers.
On the product side, Dell has developed a line of stripped-down "appliance" servers aimed at Internet customers.
But gaining a presence in the embedded market may be even more significant, since non-PC intelligent devices like handhelds and appliance servers are expected to be a big market for Linux because of its small footprint and lower cost.
Compaq will also provide appliances, server and storage platforms, key operating system components and technical support.
So far, 75 appliance, ASIC, server, and operating system vendors have signed on to license the technology.
And currently JumpBox is the largest provider of virtual appliances to server virtualization giant VMware.
But the Cobalt product is a so-called server appliance, which is designed to perform one task well and can be linked to other server appliances to handle increased demand.
The Web hosting and application market represents an important part of the overall server appliance market opportunity.
It offers a sharp step up from last week, which was slow enough to warrant excitement over Cobalt cobt, a server appliance company.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com