I.B.M. is entering the market for Internet-focused data centers with computer systems designed to reduce power consumption sharply and take up less floor space, reports Steve Lohr of The New York Times.

The move by I.B.M., which the company planned to announce on Wednesday, is the most recent sign that the major computer makers are beginning to compete aggressively to supply Internet companies and others with the specialized hardware needed for so-called cloud computing. In the cloud model, data centers with vast stores of information and processing resources can be tapped from afar through a personal computer, cell phone or...

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