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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Tony Viola who wrote (96570)	1/17/2000 6:21:00 PM
From: Saturn V	Read Replies (2) \| Respond to of 186894

Ref- <Yes, Intel doesn't have to bear all the responsibility. I was thinking from a customer's point of view. He is going to have several architectural choices for IA-64 servers, it looks like, to choose from. He'll obviously have to pick a vendor he's comfortable with, considering all the new hardware and software that's going to be under the hood on these babies. IBM and HP come to mind first.> Yes the Merced raises interesting questions regarding future positioning of the high end computer space. Today's PC market place is almost a commodity landscape- little technical differentiation, and a low margin, high volume business which allowed the new business models like DELL and GATEWAY to flourish.This has been a difficult and treacherous business for the old line computer companies like IBM, HP etc. The old server/mainframe business is characterized by high technical differentiation, low volume and high margin business. Which model will Merced based systems follow ? It looks like a combination of both. The old companies IBM,HP,Hitachi are jockeying to develop chipsets and other hardware to differentiate themselves from the expected plain vanilla commodity Merced systems from the likes of Dell etc. Unless IBM,HP etc can offer a dramatic improvement over the plain vanilla Intel chipsets, the commodity marketplace will dominate the high end computers also.If the old mainframe based companies do indeed sink, they will have gone down with all guns firing.