Intel Unveils 64-Bit Processor for Advanced Computer Workstations

Strategic Insights -

Intel Corp. introduced a new 64-bit processor chip, the Xeon, designed for powerful computer workstations used by professionals such as engineers, video editors, and researchers. The new chips deliver a 30% performance improvement over the previous generation, with speeds reaching up to 3.6 gigahertz and prices ranging from $209 to $851. The workstation market is small, with 1.5 million sales expected this year. Dell Inc. and Hewlett-Packard Co. have announced systems based on the Intel chip, with Japan's Fujitsu Ltd. and NEC Corp. also planning to use the technology.

Key Takeaways:

  • The new Xeon processors will deliver a 30% performance improvement over the previous generation of workstation processors.
  • The chips will run as fast as 3.6 gigahertz and will range in price from $209 to $851 each.
  • Dell Inc. and Hewlett-Packard Co. have announced systems based on the Intel chip, with Japan's Fujitsu Ltd. and NEC Corp. also planning to use the technology.
  • The workstation market is small, with about 1.5 million sales expected this year.
  • Dell expects to shift its product portfolio to computers based on the new chips and may add the chips to its server line soon.
  • The new chips will feature faster memory chips and a faster system, called PCI Express, for moving information around in the computer.
  • Analysts believe that pressure from Dell was the crucial factor in forcing Intel to introduce the new chips, which more closely mimic the capabilities of AMD's 64-bit Opteron processor.
  • Intel faces a marketing challenge in ensuring the new Xeon chips don't cannibalize the sales of its high-end Itanium processor.

Statistics:

  • The new Xeon processors will deliver a 30% performance improvement. (Intel Corp.)
  • The workstation market is expected to have 1.5 million sales this year. (No source cited)
  • The chips will run as fast as 3.6 gigahertz and will range in price from $209 to $851 each. (Intel Corp.)
  • Dell expects to shift its product portfolio to computers based on the new chips. (Joe Curley, worldwide marketing manager for Dell's workstation product line)
  • Intel faces a challenge in ensuring the new Xeon chips don't cannibalize the sales of its high-end Itanium processor. (Analysts from the Sageza Group and Insight 64)

Sources:

  • Intel Corp.
  • Joe Curley, worldwide marketing manager for Dell's workstation product line
  • Nathan Brookwood, Insight 64
  • Charles King, Sageza Group
  • Pat Patla, AMD's director of server and workstation marketing
  • American-Statesman staff report (kladendorf@statesman.com; 445-3622)