To: Paul Engel who wrote (108222 ) 8/24/2000 10:23:42 AM From: Road Walker Respond to of 186894 Intel in your cell By Phil Harvey Redherring.com, August 24, 2000 SAN JOSE, CALIFORNIA -- At the Intel (Nasdaq: INTC) Developers' Forum (IDF) here Wednesday, Intel announced its new communications chip architecture, called Xscale. The chips coming from this new line are expected to operate using very little power, and they'll run at speeds approaching 1 GHz, Intel executives said. This chip architecture, which is based on Intel's StrongARM chip technology, is expected to show up in Internet-ready cell phones and other handheld devices later this year, says Ron Smith, the vice president and general manager of Intel's wireless computing group. Watching Intel announce this technology while also addressing news that Microsoft is developing a communications chip for interactive TV was corporate theater at its finest. Out of one side of its mouth, Intel pooh-poohs the Microsoft news, saying that developing chips for interactive TV is an application-specific task, something that isn't Intel's forte. Out of the other side, Intel says that the reason it's making chips for wireless phones -- a pretty specific application if you ask me -- is that it is one of the hottest markets driving the demand for integrated circuitry. Bravo. PARANOIA DU JOUR Everyone's favorite sound byte from IDF so far has been Intel CEO Craig Barrett's joke that Sun's method of designing its own software and hardware was akin to communism. What Mr. Barrett would prefer, obviously, is that the server market work like the PC market, where there's a choice of hardware components and software platforms. Mr. Barrett, whose firm has been Microsoft's Siamese twin during the rise and continued dominance of the PC, is perhaps showing his bitterness that Sun's and Intel's plans to run Sun's OS on Intel's chips never panned out. Or, as some IT managers here have suggested, it may be that deep down, Mr. Barrett knows that Sun's servers are hard to uproot in an enterprise, even if there are other combinations of hardware and software that yield slightly faster servers. They say it will take much more than Mr. Barrett's mouth to change the buying habits of IT managers who'd prefer to err on the side of caution and not bet against Sun. PEER-TO-PEER PROMISES Show attendees may have a hard time finding an empty seat during a planned series of discussions on peer-to-peer networking at IDF. Industry analyst Cheryl Currid, president of Currid & Company, will lead one peer-to-peer panel that folks here are already talking about. "I'm going to try and keep the discussion focused on what peer-to-peer networking is outside of Napster," she says, referring to Napster's popularity as the "greatest beta-test on the planet." Her panelists will include Dan Beldy, a partner at Hummer Winblad Venture Partners, Napster's sugar daddy; Groove Networks's Ray Ozzie, the creator of Lotus Notes; United Devices's CTO David Anderson, who directs the SETI@home project; and others. Only recently has there been enough bandwidth and processing power available to corporate users for them to run their own distributed computing projects, Ms. Currid says. With the success of Napster, though, corporations may soon be brave enough to try their own versions of Popular Power, a firm that pays volunteers to work on small chunks of huge computational projects. "I don't know that [peer-to-peer networking] is too fringy for corporations, assuming we can get a standards body together to make it all safe, sane, and secure," Ms. Currid says. Peer-to-peer proponents say the technology's success will change the way IT managers think of buying computers, perhaps spurring them to buy for power rather than price. "You start to think of buying desktop hardware as buying a PC by day and a server on a distributed computing architecture at night. It's cheaper than the next mainframe," Ms. Currid says. Discuss chip and hardware trends in the Chips and Hardware discussion forum, or check out forums, video, and events at the Discussions home page. ©1997-2000 Red Herring Communications. All Rights Reserved.