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ServGate Strikes Dell Deal

Startup ServGate Technologies Inc. has teamed up with Dell Computer Corp. (Nasdaq: DELL) to exclusively resell its new range of security devices as the firm pushes toward profitability.

ServGates move could be a shrewd one, particularly given the security arms race currently taking place in the hardware market. The major vendors are scrambling to add security features to their product lines at a time when businesses are coming under increasing threats (see IBM Looks to Clean Up the Inbox, Cisco Teams Up With Trend Micro, and HP Enhances ProCurve Security).

Under the terms of the deal, Dell becomes the exclusive reseller of ServGate’s new EdgeForce M-Series product line, a family of seven firewall/VPN devices which also offer virus screening and Web filtering. The entry-level model, the M30, can support up to 35 users. The M1100 and M1110 are targeted at enterprises, and can support up to 1,000 users.

The challenge for ServGate is to increase its visibility against established security vendors such as Cisco Systems Inc. (Nasdaq: CSCO) and Juniper Networks Inc. (Nasdaq: JNPR). Hence the decision to team up with Dell.

Atchison Frazer, ServGate’s vice president of corporate marketing, believes the popularity of Dell desktops will lay the foundations for sales of additional products, namely the M-Series. Certainly, all the major vendors, from IBM Corp. (NYSE: IBM) to Sun Microsystems Inc. (Nasdaq: SUNW) and Hewlett-Packard Co. (NYSE: HPQ) use similar strategies to boost their revenues.

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