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Intel Prepares Release of Itanium 2 Processor

July 3, 2002 -- (WEB HOST INDUSTRY REVIEW) -- Chip manufacturer Intel Corp. (Intel.com) is reportedly preparing for next week?s release of its Itanium 2 chip, the follow-up to the company?s original ill-fated effort at providing processors for the high-end server market dominated by Sun Microsystems.

   
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The original Itanium chip, Intel?s first venture into the 64-bit chip market, was largely unsuccessful. Analysts say the product came out months late and had too few software programs written for it, scaring off enterprise customers averse to large-scale processor changes.

The Itanium 2, which includes a number of improvements over its predecessor, could gain Intel the access it seeks into the high-end server market.

While the company?s Xeon processor has established Intel in the server market, the high-end systems made by Sun, IBM and HP account for a significant portion of the server business?s revenue. Intel says it is targeting this high-end market.

Intel says that while the Itanium was originally accepted by the scientific community, it expects the new chip to pick up with big business. Fujitsu, HP, IBM and Microsoft are all expected to release systems and software supporting Itanium 2 next week.

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