Hewlett-Packard

(HWP)

and Internet infrastructure software company

Inktomi

(INKT)

have teamed up to build caching and streaming media appliances.

Hewlett-Packard, which is based in Palo Alto, Calif., said it will create caching and media products using Inktomi's network infrastructure software. H-P will use Inktomi traffic server software in its customized Netservers to create three new products for edge and server caching and streaming.

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The server appliances are designed to enable caching and fast delivery of rich media content. H-P expects to ship the products in the second quarter. Hewlett-Packard said the move is part of its goal to become a leader in the server appliance marketplace, an area that could grow to $13 billion by 2004, according to projections from

International Data Corp.

Shares of Hewlett-Packard gained 73 cents, or 2.4%, to $31.23 in recent

New York Stock Exchange

trading. Inktomi, which is based in Foster City, Calif., fell 13 cents, or 1%, to $12.88 on the

Nasdaq

.