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

To: Road Walker who wrote (141658)	8/15/2001 11:05:29 AM
From: Tony Viola	Read Replies (1) \| Respond to of 186894

Here's IBM's Foster Xeon based machine that uses their own Summit chipset we've been hearing about. Looks like up to 16 way. One big deal about it is high availability: Among other things, the chip linkups will allow the servers to self-manage, meaning systems won't have to be shut down for servicing and upgrades. Comparing the technology to auto racing, IBM's chief technologist for the xSeries, Tom Bradicich, said, "Imagine that you're a race-car driver and don't ever have to make a pit stop to change your spark plugs or tires. That's what these servers are meant to do: be up and running all the time." WSJ(8/15): UPDATE: IBM To Roll Out Servers With Intel Help By Joseph Pereira Staff Reporter of The Wall Street Journal International Business Machines Corp. is preparing to roll out a line of new computer servers that combines its latest technology with a cutting-edge Intel Corp. microprocessor, a move that is likely to heat up competition in the fast-growing Intel-based server market. IBM is expected to unveil the servers today at a software-developers conference it is hosting in San Francisco. IBM ranks behind Compaq Computer Corp. and Dell Computer Corp. in the $20 billion Intel segment of the server market. The new machines -- part of its eServer xSeries -- could give it a powerful weapon in the most lucrative part of this business. Intel servers, often called PC servers within the industry, are typically attached to a group of personal computers, helping them function in an office environment. IBM declined to release the pricing of its new line. Its new machines will, however, compete against Unisys Corp.'s Intel-based servers, with as many as 32 Intel microprocessors, which sell for about $500,000. (Dell and other companies resell these Unisys servers.) The xSeries contains Intel's new Xeon processor and a group of IBM connector chips, called Summit, that could allow as many as 16 microprocessors to work in tandem. Among other things, the chip linkups will allow the servers to self-manage, meaning systems won't have to be shut down for servicing and upgrades. Comparing the technology to auto racing, IBM's chief technologist for the xSeries, Tom Bradicich, said, "Imagine that you're a race-car driver and don't ever have to make a pit stop to change your spark plugs or tires. That's what these servers are meant to do: be up and running all the time." The Summit chip heralds enhanced standing for IBM in servers. Considered an industry laggard that often copied other computer makers' systems as recently as five years ago, the Armonk, N.Y., company has since regrouped and made strides with sales of new servers based on Linux, a free operating system, and Unix, a widely used business standard. "Their products didn't have traction, so they went back to the drawing board and said, `let's not just be clones of everybody else anymore,' " said Jonathan Eunice, an analyst for Illuminata, a research firm based in Nashua, N.H. In a nod to IBM's technological comeback, Intel, based in Sunnyvale, Calif., has chosen IBM's Summit chip set to test a new Xeon chip, marking the first time that the chip maker has used an IBM product to showcase its server processors. The Intel-IBM systems will hit the market either in the fourth quarter of this year or the first quarter of next year, according to officials from both companies. Servers are an important part of IBM's growth strategy. Although IBM's Intel and other servers accounted for $11.4 billion, or about 13%, of the company's $88.4 billion in revenue last year, analysts note that sales of servers also generated sales of related software, services and maintenance fees -- for a total of 40% of IBM's revenue. (Voluntary Disclosure: Position- Long; ST Rating- Buy; LT Rating- Strong Buy)