Microsoft announced at the TechEd conference in San Diego that it will team with hardware vendors to begin selling security appliances. The company aims to provide customers with a dedicated hardware solution that runs Internet Security and Acceleration Server (ISA) 2004, which is currently in beta testing. The solution will become available beginning in the third quarter of this year from Hewlett-Packard, Network Engines, Celestix Networks, and Advantis. The starting price will be $1499 per CPU, per server.