Compaq looks to spread its server vision By: Stephen Shankland, CNET News.com 2/15/00 8:35:00 PM Source: News.com
SAN FRANCISCO--By 2001, Compaq Computer will spread its Windows-based computers into every niche of computing, chief executive Michael Capellas said today.
The end result will be "breakthrough enterprise economics" in 2001, in which big business will be able to use comparatively cheap Intel-based computers instead of the proprietary hardware and software used today to run demanding jobs such as extremely busy e-commerce databases.
The effort will include a 32-processor Unisys server that Compaq will sell under its own name. That product line will use current Intel chips when it debuts midway through this year but will be available with Intel's new Itanium chip later this year, Capellas said at a keynote address here during the three-day conference for the unveiling of Microsoft's new Windows 2000 software.
The vision to push Intel to ever-greater heights isn't surprising, given Compaq's affinity for what it calls the "industry-standard" computing philosophy, with numerous competitors selling very similar computers, invariably using Intel CPUs and usually the Microsoft Windows operating system.
But what is surprising is how little the vision depends on its own old-school hardware designs Compaq acquired in the late 1990s when it was in a stronger financial position. Compaq bought Tandem Computer in 1997 and Digital Equipment Corp. in 1998.
Compaq hasn't always been successful in its long-running push to spread industry-standard computers into more demanding markets. Its partnership with Microsoft to boost Windows NT on computers with Compaq's Alpha chip crumbled last year, and Compaq's financial struggles also led it to cancel its plans to bring its own version of Unix to Intel's Itanium chip.
In addition, most analysts agree that a 32-processor Intel server doesn't really deserve the "industry-standard" appellation, because such systems require a very specialized design. Standard designs for Intel servers top out at eight processors, where many companies ship computers built around Intel's Profusion chipset.
But Compaq has done well with the eight-processor machines, Capellas said. The company has 90 percent market share for the servers. The company shipped more eight-ways than some projected the entire market to be, he added.
Going into the future, Compaq will rely on clusters of multiprocessor servers connected over a high-speed connection, Capellas said. Compaq, IBM, Hewlett-Packard, Intel, Sun Microsystems and others are working away on creating the "Infiniband" technology that will make this interconnection possible.
Also at the keynote, Capellas said the company had high hopes for its iPaq, a PC that discards older connection technology and is intended to be easier for corporations to manage than today's comparatively complex desktops. The company expects to sell $1 million worth of iPaqs by year's end, a company representative said.
Capellas also disagreed with a Gartner Group projection last week that about a quarter of companies would experience some problem upgrading to Windows 2000.
"I do believe the rollout will be a lot smoother than Gartner Group indicated," he said.
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