Intel this week launches the Itanium 2 server processor. The company is betting big that it can convince companies which build servers to use the new chip as ubiquitously as PC makers now employ its lower-end CPUs. But the Wall Street Journal (subscription required) reports Intel has its work cut out. By Intel’s own admission, most corporate clients are already plenty happy with the oomph their existing 32-bit processors provide. And for folks that need supercomputer-level power, clustering many weaker, but far cheaper chips may provide an appealing cost-benefit ratio. Yes, there is that segment — which in revenue terms is substantial — willing to pay a premium for 64-bit processors. But in that arena Intel will compete with entrenched products from IBM, Hewlett-Packard and Sun. Finally, if and when all those dragons are slain, pokey old Advanced Micro Devices is coming round the bend with a new line of “Hammer” chips that feature both 32- and 64-bit capability. Five years from now it’ll be a kick to read a “The Soul of a New Machine“-style chronicle of how Intel handles the coming slugfest.
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