Can Intel Measure Up in the Server Market? New In-Stat/MDR Report Provides Insight.

Business Editors/High-Tech Writers

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Nov. 19, 2001

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 according to Cahners In-Stat/MDR (www.instat.com).

The high-tech market research firm reports, that the chip manufacturer will have its work cut out as the 64-bit server market still has several leaders including IBM and Sun.

Senior Analyst Kevin Krewell stated, "Muscling into IBM and Sun territory will take considerable ingenuity, but 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."

To succeed in the server market segment, Intel must match or exceed its competitors in reliability, serviceability and performance.

In-Stat/MDR has also found that:

-- Intel will not obsolete the 32-bit Xeon within the timeframe of
In-Stat/MDR's newest Intel server and workstation processors report. The large
die, high power, and mediocre integer performance of the initial Itanium will
preclude it from winning many designs, but the next generation (McKinley) will
offer architectural improvements. In 2H02, a process shrink to 0.13-micron will
create a manufacturable Itanium.

-- Intel will not migrate all server designs to the Xeon or Itanium processors.
It will continue to use the Pentium III-S and Banias through 2003 for dense or
blade servers.

-- Intel's focus on the server market is partially to offset decreasing ASPs
(Average Selling Prices) for PC processors.

-- Despite Intel's slashing prices of desktop processors by up to 51 percent,
Intel's workstation and server ASP should be stable during 2001 and begin
sinking in 2H02.

The report, "Intel Server and Workstation Processors" (No. IN0105IN), focuses on Intel's workstation and server processor business and includes volume, product, and clock speed estimates to 4Q03; pricing projections to 4Q02.

This report covers the transition of the Itanium (IA-64) processor family through three generations. Chip set and platform technologies are included. Intel's x86 competition includes AMD in the mid-range and Transmeta in the low-end. Data is based on In-Stat/MDR's proprietary model, dating back as far as 1995.

To purchase this report, or for more information, please visit http://www.instat.com/catalog/cat-semi-intel.htm or contact Erin McKeighan; [e-mail] at 480/609-4551. The report price is $1,995 USD.

About In-Stat/MDR

In-Stat/MDR offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products.

This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end-users.

In-Stat/MDR is a unit of Cahners Business Information, a leading provider of critical information and marketing solutions to business professionals and a member of the Reed Elsevier plc group.