PROVO -- Compaq Computer Corp., the top maker of personal computers, will sell machines that store Internet data on computer networks, using software from Novell Inc. to enter a fast-growing market.

Compaq will include the Internet Caching System from Novell, the No. 2 maker of networking software, in the line of ProLiant servers that it sells to Internet service providers. Compaq rival Dell Computer Corp. said on Monday it will use Novell's software to build similar machines.Caching technology reduces the time and cost of retrieving data from the Internet by storing frequently used information on the computer servers that run Web sites. Compaq and Dell are looking to sell Internet gear as PC sales slow, and Novell is expanding its line of software products to include more Internet management capabilities.

"There's a big opportunity in the caching business," said Ted Julian, an analyst with market researcher Forrester Research in Cambridge, Mass.

According to a report from market researcher Dataquest, the market for caching appliances is expected to grow to about $750 million to $800 million in 2003 from about $50 million this year.

Compaq will license Novell's software and begin selling the machines "within 90 days," said John Young, director of Compaq's appliance and communication server unit. He declined to disclose the product's price.

Dell said Monday it will sell its Internet Caching Appliance at prices starting at $4,500.

Top networking-equipment maker Cisco Systems Inc., Network Appliance Inc., Inktomi Corp. and closely held CacheFlow Inc. also make caching products.

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