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Thu, May 31, 2001 - Page 21 News List

Computer makers battle to control server market

BLOOMBERG , PALO ALTO, CALIFORNIA

Hewlett-Packard Co and rival computer makers introduced new server computers, the powerful machines that run networks, based on an Intel Corp chip aimed at winning business from Sun Microsystems Inc.

Intel for months has been shipping test versions of Itanium, a chip that processes data in 64-bit chunks rather than today's standard 32 bits. Some computers with the chip are available now, and others go on sale next month.

Hewlett-Packard, IBM and competitors have been trying to wrest control of the market for the high-end servers that handle corporate databases away from Sun. So far, they've used their own chips because Intel's server products haven't been up to the task. Even with the stronger chip, analysts said it's going to be tough battle.

The systems introduced today are workstations, the souped-up personal computers used for scientific and engineering tasks, and mid-range servers that are moderately priced and run less data-intensive applications than top-notch systems. High-end machines will be unveiled in coming months, computer makers said.

Intel expects 25 manufacturers to introduce Itanium-based servers this year, spokesman Tom Beermann said.

Sun, the biggest server maker in the US and No. 2 worldwide behind IBM, builds machines that run on the Unix operating system rather than Microsoft Corp's Windows. Unix is perceived as being more stable than Windows, and Microsoft's database software can't handle as big a load as the Oracle Corp program that usually runs on Sun gear, Partridge said.

"Intel is in trouble," said Sun VP Shahin Khan. "It's an area that they really just don't understand, and we have an absolutely unbeatable offering in the market."

Computer makers will start slow. Hewlett-Packard helped design the chip. The company will start shipping an Itanium-based workstation and two Itanium servers in late June, Hewlett-Packard said in a statement.

IBM will begin selling an Itanium server and a workstation in late June or early July, spokeswoman Jeanne Orfinik said. The server will boost performance on data-intensive programs and speed online transactions, Armonk, New York-based IBM said.

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