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Intel Raises The Server Chip Ante With New Itanium.(INTERNET & TECHNOLOGY)

Investor's Business Daily

| July 01, 2003 | Detar, James | COPYRIGHT 2003 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: JAMES DETAR

Intel Corp. has long ruled the PC processor universe, standing far above all of its challengers combined. But that's not been the case in the server field.

Yes, Intel sells more server chips than anyone. But it sells less than half of all such chips. And it faces strong rivals in IBM Corp. and Sun Microsystems Inc.

On Monday, Intel took its latest and biggest step to gain dominance in servers. The company rolled out a pair of chips for network server computers. One, code-named Madison, is the latest in its Itanium line of chips for servers. The other is a new Xeon for lower-end servers.

Madison is the second version of the Itanium 2 and the third in the Itanium line of 64-bit processors. Itanium debuted in May 2001. The first Itanium 2 came out in July 2002.

Intel customers complained that these first two Itaniums were slow and didn't have enough memory. As a result, sales lagged expectations.

Now, Intel says, adding Madison to its lineup will spark its network server chip sales.

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