Analyst Firm Offers Guidance on Intel's Server Processors

Analyst firm Cahners In-Stat/MDR predicts Intel Corp. will need a few more years to catch up to the capabilities of enterprise server processors produced by IBM and Sun.

The market research house also predicts that Intel will keep some of its non-Xeon 32-bit server processors alive for awhile.

"Intel Corp. has made significant inroads into the server market with its new Xeon (the server version of Pentium 4) line of processors and is on its way to shaking up the market over the next several years," the analyst firm says.

But senior analyst Kevin Krewell says muscling into IBM and Sun 64-bit territory will take considerable ingenuity.

"Intel may be up to the task. Intel plans to upgrade areas with succeeding products to pull ahead of its rivals' benchmarks, but that evolution will take several years," Krewell says.

Meanwhile, In-Stat expects several non-Xeon 32-bit server processors to remain in production through 2003. The Pentium III-S and Banias servers have a future in dense servers, In-Stat finds.

Other conclusions of In-Stat's latest report, "Intel Server and Workstation Processors," are that Intel must focus on the server market to help offset decreasing prices for PC processors. In-Stat predicts that the intense price cutting that has driven down desktop processor prices by up to 51 percent will not extend to server or workstation prices in the near term.

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.