In a computer system in which a plurality of hosts is connected through an interconnection network, an apparatus coupled to the interconnection network for allowing the plurality of hosts to share a collection of memory sectors, the memory sectors storing compressed data, is provided. The apparatus includes a network adapter for coupling the apparatus to the interconnection network; a memory for storing the collection of memory sectors; and control logic for managing the memory, the control logic including a memory compressor/decompressor. The memory further includes a directory for translating real addresses of at least one host to an address in the apparatus. A method for managing a number of memory sectors used by each host and a method for translating a real address specified by at least one host into a real address of the apparatus is also provided.