The Intel strikes back

SPECIAL REPORT

In the face of encroachment by AMD into traditional chip markets, Intel is powering to strike back with a recently announced series of releases.

Key to this is the coming launch of its quad core chip family for x86 servers - Core 2 - along with the development of energy-saving processors.

The Core 2 Extreme, which will see Intel pushing on quad-core Xeon servers, aka “Clovertown”. These promise a performance increase of over 50% over traditional dual-processor Xeons, according to Intel.

However, Intel CEO Otellini is promising a new wave in Q1 2007, with the release of Core 2 Quad - aka Kentsfield - which is claimed will surpass Xeon X6800 server performance by over 70%.

Intel will continue to push on single and dual processor servers, with the launch of the Xeon 3200 series also in Q1 2007.

The push on quad core technology marks an upturn in Intel marketing aggression, which is focused on establishing itself in the quad-core market well ahead of AMD, who previously caught them napping on 64-bit chipset and dual-core server markets.

Already Intel is chasing closer relationships with hardware sellers, and Rackable appears to be the first in a line of server distributors who - despite strong backing for AMD - are now looking to get more from Intel’s Xeon servers for customers.

While Intel is pushing first on top-end server market applications, there is expected to be a significant push on lower end quad-core servers later in 2007.

Not only that, but Intel CEO Otellini is also pushing for energy-saving 45nm chip designs - which could use a tenth of the power of existing chipsets - to start hitting the open markets in 2008, ahead of Intel’s original schedule by 2 years.

The roadmap is already in play over the coming decade with the current chips, aiming to push down to 32nm processors on the so-called Gesher architecture, which in theory at least boast a 310% increase in processor performance-per-Watt ratings.

Overall, Intel has been left looking like the dinosaur by AMD, who have been quick to grab significant market share in areas traditionally owned by Intel. Wall Street disapproval has led to Intel restructuring their company operations - not least the removal of 10,000 jobs.

However, legal action brought by AMD over claims of antitrust violations have already been thrown out in part by a US Federal Judge.

In theory, Intel’s positioning looks like a sound way to stake a clear claim on emergent server markets as a front for reclaiming existing ones.

However, whatever plans Intel may have, their success or failure ultimately may rest not on how well Intel can do, as much as AMD fails to.