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Technology Stocks : Intel Corporation (INTC)
INTC 41.41+2.2%Dec 5 9:30 AM EST
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To: gnuman who wrote (65961)10/7/1998 2:57:00 PM
From: Jeff Fox  Read Replies (1) of 186894
 
Gene, re: Intel server thrust

Nearly all Intel servers are Xeon based. Well actually most Intel based servers are still Pentium Pro based as the server market switches product much more slowly than the PC market.

There is, and will be very little cannibalization by Pentium II's.

Why? There is a huge reason that interestingly has never been discussed on this forum - that is cerification. Server product is carefully certified by server makers, both the vendor and the product. Intel has invested tons of resources to achieve certified status at all server vendors. It is critical for vendors that its products are rock solid and that their manufacture is also rock solid. These decisions take months to do, but the resulting commitment sticks for years.

Well, the Pentium II are not certified for servers. All AMD product is not certified for servers.

Now this is not to say that end users are not using PII boxes in server applications. I am sure this is true at mom and pop shops, universities and other low mission critical locals. This is fine, but these sites are not included in Intel server market targets.

As for Intel increasing market share, the story is compelling. All other competitors sell at much, much higher cost than Intel due purely to both execution skill and business size. Nobody else is making anywhere close to similar investments in the next generation server business.

Jeff
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