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Technology Stocks : Intel Corporation (INTC)
INTC 37.81-4.3%Dec 12 9:30 AM EST
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To: THE WATSONYOUTH who wrote (143174)9/9/2001 9:34:27 PM
From: Tenchusatsu  Read Replies (3) of 186894
 
TWY, <Then it should be easy for you to explain why say an 8 way Itanium system from say H.P. has to be be far cheaper to a customer than an 8 way Power4 system from IBM. Assume they are configured as similarly as possible.>

It's the same reason why the same Itanium system will be far cheaper than a similarly-configured UltraSPARC or PA-RISC or Alpha system. Itanium is SHV. The others are not. Period.

<Well the Microprocessor Report estimated a module only (no chips) cost of $400. I believe that includes the multi level glass/ceramic substrate. ... But what does it say about your claim that $2500 is far too low????>

I haven't read the MPR report yet. (Or maybe I have, but I forgot details like this.) But if MPR is claiming that the module (no silicon) is $400 and the module w/ silicon is $2500, then obviously they think the four chips will cost $2100 total. Heh, maybe IBM's SOI process is super-expensive. ;-)

All joking aside, I have a hunch that you are taking figures out of context, but without having read the MPR article myself, I'll withhold on that judgement.

<Power4 replaces two SEPARATE chip designs currently being used in R6000 systems and AS400 systems.>

OK, I see you point here. But do the combined volumes of RS6K and AS400 come even close to the volumes of Xeon? Intel has grand plans to eventually replace all of Xeon with Itanium over the long term. It'll take time, for sure, but at least Itanium has the head start over POWER4.

Tenchusatsu
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