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Will Itanium bring low-cost enterprise computing?

Friday 08 June 2001 12:52
Processors: Intel's 64 bit launch will force users and manufacturers to review performance and price, especially as some analysts are advising users to wait for the next version.

Intel's Itanium chip marks the dawn of a new era of cheaper midrange computing as the other 64-bit suppliers are forced to react to the chip giant's mass-market economics.

The first fruit of the Intel Architecture 64 (IA-64) was officially launched last week, following a clutch of announcements of servers based on Itanium from IBM, Dell, SGI and the Itanium chip's co-developer Hewlett-Packard.

Throughout the development of the processor, Intel has stressed that it is just a forerunner to the IA-64 line but, following these announcements, anyone could be forgiven for believing that these were more than mere development chips.

Although most companies are unlikely to deploy mission-critical applications on new IA64 systems until the next version arrives in 2002, Intel's 64-bit milestone could turn the midrange computing market, where Sun, IBM, Compaq and HP currently dominate, on its head.

The next version of Itanium, currently known by its development name of McKinley, will have the support of Windows 2002, as will a host of 64-bit applications running on Windows, HP-UX Unix, Linux, Novell's Modesto and any other platform that has been remodelled for the environment.

The chips are intended to be relatively low cost and compatible with programs for previous chips through emulation. This does not mean they will be cheap, however, with prices per processor bought in 1,000 chip lots expected to be $4,227 (£2,818) for the top end 800MHz Itanium with 4Mbytes of tertiary cache and $1,980 with 2Mbytes of cache.

The slower 733MHz chip with 2Mbytes of cache will cost $1,177 but reports say that the 4Mbyte version will also cost $4,227 which seems rather high.

These prices are only a guide because it is the cost of the complete server that will help to determine the future sales.

Although no suppliers have yet announced prices for servers or workstations, there is no doubt that these will be pitched to give the current 64-bit server manufacturers cause for concern.

Most have insured themselves against whatever the future holds by adopting Itanium alongside their current ranges. Sun Microsystems is the notable exception, and Sun's user base will be the main battleground .

Sun will argue that the Itanium is Intel's first attempt at a 64-bit architecture. Other 64-bit chips have been around since 1992 in the form of Mips-based midrange and mainframe systems or Compaq (formerly Digital Equipment) Alphaservers.

Sun, IBM and Hewlett-Packard did not enter the midrange server market until about 1996-7 but that still gives them a four- or five-year development lead on Intel.

It will be crucial for the Itanium servers to prove their reliability first time out and Intel claims that to date it has already pre-released 40,000 processors for development systems.

Graham Fisher, senior analyst with Bloor Research, said a battle of words will eventually give way to deeds in the form of price cutting.

"Ultimately, Intel-based 64-bit servers will make an impact on Sun's market share but when this will happen depends on the availability of Itanium software, he said.

"With McKinley expected some time next year, I would not expect to see any serious price-cutting until then."

Eric Doyle and Daniel Thomas