IA share in the >$100 K server market expected to rise from 6% (1999) to 21% (2003)
in the $50-$100K range from 14% to 48%
in the $25-$50K range from 27% to 62%
Source : IDC Q2 1999 - presented by Paul Otellini, Intel Executive WEBCAST
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Intel targeting high-end servers
BY TOM QUINLAN
Mercury News Staff Writer
For the past two decades, Intel Corp. has defined the ``brains' for the personal computer with its standardized microprocessors. Now, the Santa Clara company is trying to make sure it also controls the most important chip technologies for the next 20 years.
To achieve that goal, Intel is racing to reinvent itself, adding networking and communications chips to its core business and even dabbling in Internet services.
Intel's most critical task, however, is to get its next generation of chips into a whole new market -- the $100,000-plus servers that drive the Internet.
Although Intel chips are common in low-end servers, the company's products are in just 6 percent of those high-end machines -- a pittance compared to competitors like Sun Microsystems Inc., Hewlett-Packard Co. and IBM, which have long owned the high end of the computer business.
To move into that profitable niche, Intel must juggle carrot and stick to convince those rivals to support the company's fast new 64-bit Itanium processor (also known as Merced), even if it hurts sales of their own proprietary processors. |
