Semiconductor giant Intel Corp plans to update its Xeon server processor so that it can address vastly more memory than previous generations and compete head-on with Advanced Micro Devices Inc's (AMD) Opteron chips.
Until now, Intel's 64-bit strategy revolved solely around its high-end Itanium processors, which were codeveloped with Hewlett-Packard Co for the most demanding computing jobs. Anything else could be handled by today's 32-bit processors, the company had said.
On Tuesday, Intel changed its tune, saying an increasing number of programs -- primarily for the business world -- can take advantage of the additional memory made possible with 64 bits. Operating systems that support 64-bit computing are now available or in testing.
Intel, which introduced Itanium just as demand was collapsing in the 2001 downturn, said it is not backing away from that chip despite sales that have failed to meet original expectations.
"We're trying to span the range from the very high-end enterprise down to the smaller server workstation," Craig Barrett, Intel's chief executive, said at the company's spring developer conference.
The new Xeons, which will become available in the second quarter, will be targeted at servers and workstations, as opposed to large corporate mainframe computers for Itanium chips. Unlike Itanium, the Xeons can run existing programs designed for 32-bit chips without a performance hit.
Intel's announcement ratchets up the competition with AMD and affirms the smaller company's 64-bit computing strategy.
"They've finally started listening to customers -- and listening to the same customers we've been talking to for some time," said Ben Williams, director of AMD's server and workstation business segments.
Last year, AMD, which until then was primarily known for producing Intel clones, launched its 64-bit Opteron server chip. Unlike Itanium, it did not require an emulation mode to run older programs.
"The timing of Intel's move allowed AMD to get established in the market," said Nathan Brookwood, an analyst at Insight 64. "Intel's move now enhances their credibility. In the end, it will be more competitive and that's a huge win for the end user."
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