To: Cirruslvr who wrote (69071 ) 8/17/1999 4:27:00 PM From: Process Boy Read Replies (1) | Respond to of 1576159
Cirrus, How do you view AMD's prospects at taking on SUNW? PB ======================================================================dailynews.yahoo.com Tuesday August 17 3:24 PM ET New Business Computers Lob Threat NEW YORK (AP) - Major makers of personal computers are uniting with computer chip giant Intel Corp. (Nasdaq:INTC - news) as they seek to crack the market for business machines that manage heavy-duty computing tasks, such as processing millions of transactions. Compaq Computer Corp. (NYSE:CPQ - news), lobbing the first salvo, unveiled a new type of powerful computer Tuesday that uses less expensive Intel chips and runs on Microsoft Windows operating software. The machine, called an ''eight-way server,'' ties together eight microprocessors to match the performance of the higher-priced computers. Other makers, such as Dell Computer Corp. (Nasdaq:DELL - news), Hewlett-Packard Co. (NYSE:HWP - news) and IBM, are expected to follow with similar products. The new computers take aim in large part at Sun Microsystems Inc. (Nasdaq:SUNW - news), which specializes in selling high-end RISC, or reduced instruction set Unix computers. IBM and Hewlett-Packard also sell these machines, which can cost corporate customers up to several million dollars each, but are selling the new Intel machines as well. Intel, whose chips are the brains of 90 percent of the world's personal computers, has been aggressively trying to sell microprocessors for bigger machines, a lucrative market. A big reason is Intel's profits are shrinking on its least expensive chips for PCs, hurt by price wars with rivals. A few years ago, Intel launched a successful effort to sell chips for workstations, or powerful desktop machines, which displaced computers using RISC technology. The machines cost less in part because Intel, as the world's largest chip maker, is able to mass-produce microprocessors at low prices. Now Intel wants to move up the corporate ladder by selling chips for machines that form the hub of networks of smaller business machines, or for computers used to run Web sites. But hurdles remain to Intel, Compaq and others seeking to usurp the crown of high-end computing. For one, Intel-based servers commonly use the Windows NT operating system for running the computer's basic functions. But Microsoft Corp. isn't releasing new operating software specifically made for the new breed of machines until next year.