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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Night Writer who wrote (94192)	12/12/2001 11:24:37 AM
From: Night Writer	Read Replies (1) \| Respond to of 97611

Intel takes aim at telecommunications server market SAN FRANCISCO, Dec 12 (Reuters) - Intel Corp. <INTC.O> said on Wednesday that it is shipping the building blocks necessary to create extremely reliable computer servers for telecommunications and Internet service providers, taking aim at rival Sun Microsystems Inc. <SUNW.O> and its dominant position in that market. Intel, the world's largest chipmaker, said that the components consist of a Pentium III Xeon processor, a motherboard and a chassis, which would be purchased by the likes of Hewlett-Packard Co. <HWP.N>, Compaq Computer Corp. <CPQ.N> and Nortel Networks Corp. <NT.N> Intel's customers would then build the servers, adding memory chips, hard disk drives, and computer cards to enable different types of services, such as voice over the Internet, and in turn sell them to telecommunications and Internet service providers. The new servers will conform to rigid standards outlined by the Network Equipment Building Specification (NEBS) and European Telecom Standards Institute (ETSI), and are designed to function in excessive heat, cold, fires, earthquakes and other natural disasters. Historically, most so-called NEBS-compliant or NEBS-certified server computers have run a variant of the Unix operating system and use processors made by International Business Machines <IBM.N>, Sun Microsystems, Compaq and others. The servers built on Intel's offerings will run Windows, Linux and Unix, the Santa Clara, California-based company said. It first disclosed its plans to address the telecommunications server market in May 2001 at its Intel Developer Forum in Amsterdam. Until recently, said Abhi Talwalkar, vice president and assistant general manager of Intel's enterprise products group, Intel had viewed the telecommunications server business as opportunistic. "But over the last year and a half we've gotten much more focused," Talwalkar said. "This is the start of a much broader product line. It won't necessarily be easy going up against Sun. Sun has long been selling into the telecommunications market. It also used its experience as an early arrival to the telecommunications server market in successfully selling its servers to newer customers such as Internet service providers and Web-hosting companies. As such, Sun has an estimated 60 percent of the market for so-called carrier-grade servers. "Sun has been entrenched in the telecom market for years," Talwalkar said. Intel is now aiming to replicate the success it had in the more generic server computer market in the telecommunications server market and its offerings are aimed at competing with Sun's Netra line of servers. ((-- Duncan Martell, San Francisco bureau, +1 415-677-2536, duncan.martell@reuters.com )) REUTERS * end of story *