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To: Barry Grossman who wrote (44595)1/9/1998 9:47:00 AM
From: greenspirit  Read Replies (2) | Respond to of 186894
 
Good Morning Barry, Article...Intel Wrings New Efficiencies From Silicon...
January 9, 1998

Internet Week via Individual Inc. : The microprocessor story in 1998 is Intel's to write as the silicon giant seeks to consolidate its chip hegemony and fend off challengers and threats.

Intel plans to release its next-generation Pentium II chips, code-named Deschutes, in the first half of the year. Unlike existing Pentium's, which are optimized for desktops, Deschutes will be designed for both servers and desktops, with a new low-end model specifically for notebook computers. At the same time, systems vendors will be working behind the scenes to gear up for Intel's big offering of 1999-the chip code-named Merced, a 64-bit processor designed for use in high-end enterprise servers.

Among users eagerly awaiting the performance increases of Deschutes and Merced is Richard White, chief technical officer for Best Internet Communications Inc. Best Internet provides low-priced Web hosting and looks to shave nickels off its costs in any way it can-even to the point of building its own PC servers from components.

"We're looking to squeeze every bit of performance that we can out of our servers," White said. "We're waiting expectantly for the Merced chip set to arrive on the scene-it will raise the Intel architecture to the level of performance we're now seeing on the Sparc architecture."


For its part, Sun is planning a new midrange UltraSparc IIi and new Java chips, designed specifically to run Java apps and to be used in consumer devices and network computers.

Other RISC chip manufacturers also are feeling the pressure from Intel. IBM in 1999 will introduce 64-bit PowerPC chips in the 400-MHz to 500-MHz range, while Digital Equipment's Alpha processor is at a crossroads. Digital last year sold manufacturing and research facilities for the chip to Intel, part of the settlement of a patent-infringement lawsuit.

What that means for the future of Alpha is unclear. Digital maintains it means nothing, that the company will continue to support Alpha systems. Some observers, however, questioned whether this means Digital plans to abandon Alpha and focus its efforts on the Intel architecture. Others said the opposite-that the sale of the factories could make Digital more agile and better able to sell the architecture. If that's so, this year Alpha could enjoy popularity it's never before seen.

"It takes away the classic objection around Alpha, which is that Digital doesn't have the financial strength to sustain it," said Jon Oltsik, an analyst at Forrester Research. "Alpha as an NT server is a really good product."

Meanwhile, on the low end, chip vendors are continuing to look for improvements in performance and lower costs from "system-on-a-chip" technology- microprocessors that combine system logic with graphics, peripheral controllers and I/O controllers. Systems-on-a-chip will likely continue to be the domain of low-end devices, such as TV set-top boxes, under-$1,000 PCs, mobile phones and palmtop computers, analysts said.

A leader in system-on-a-chip technology last year was Cyrix Corp., which was acquired by National Semiconductor Corp. National Semi plans to build on Cyrix's successful introduction last year of the MediaGX chip, which integrates system logic and multimedia controllers. In 1998 or early 1999, National Semi plans to add features such as 3D graphics support, audio, MPEG acceleration and integrated modems. The companies also will look for ways to merge National Semi's embedded 486 chip with Cyrix's system-on-a-chip technology. The ultimate vision-many years down the road-is to integrate all computing functions onto a single chip, said a company spokesman.

"We'd like to turn the personal computer into a little device on the back of an LCD panel. You won't even know it's there," the spokesman said.

Some of the biggest developments in microprocessors this year could come from lawyers, rather than engineers. Last year, the Justice Department began investigating Intel for alleged anti-competitive practices. Later, Intergraph Corp. sued Intel, charging that Intel tried to intimidate Intergraph and break that company's relationships with key business partners. Intergraph claims Intel was trying to force it to give up patent claims to chip technology.

The outcome of the Justice Department's action is unclear. It could mean nothing, it could be catastrophic, or it could be anything in between. The Intergraph lawsuit, on the other hand, is likely to be settled without much harm to Intel, said Linley Gwenapp, publisher of the Microprocessor Report.

"It'll just take money," he said. "Intel has plenty of that. "
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Regards, Michael