Intel releases its dual-core Xeon server processor

Intel releases its dual-core Xeon server processor

In an effort to regain lost ground against its smaller competitor (Advanced Micro Devices) AMD, Intel unveiled its first dual-core server processor for servers with two processors on Monday.

The world's biggest producer of chips, this Xeon processor (codenamed as Paxville) features a 2.80 gigahertz chip and ships for $US1,043 ($1375), all in bulk quantities.

In conjunction with Intel's hyper-threading technology, these dual-core processors have the ability to double the quantity of work a one-core processor does within a stipulated time.

Apart from using up less amount of power, they are also likely to better the performance of the dual-processor servers by as much as 50%.

This dual-core Xeon processor from Intel was supposed to be unraveled in the first quarter of next year but its early release was prompted by the manufacturing work which was running much ahead of schedule.

In the coming months, servers and workstations encompassing this chip will be sold by some key companies like Dell, Hewlett-Packard, IBM and others.

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A faster version for servers with more than two processors will also be available in the near future. Further, Intel also guarantees a better range of dual-core processors, codenamed Bensley, in the first quarter of the next year that will cost only as much as the single-core chips and will also include the 65 nanometre technology.

Earlier, Intel rival AMD came out with its own dual-core Opteron processor in April. And apart from Dell, all the chief computer manufacturers used the AMD chips.

In the last few months, Intel has been losing market share to the smaller AMD in the "x86" server segment courtesy the latter's technological improvements.

According to Mercury research, the share of AMD rose from 7.4 per cent in the first quarter to 11.2 per cent in the second. This even as Intel continued to be way in front at 88.8 per cent.
Henri Richard, AMD head of sales and marketing reacting to the Xeon processor launch stressed that Intel is pinning its hopes to succeed on a stopgap arrangement.

However, analysts at A.G.Edwards have contrasting views. They feel that with the unwrapping of Xenon, AMD's hold in the server space category might weaken in the future.

They also clarified that even though AMD has been charging higher than Intel in the last few quarters in servers, this will definitely change considering Intel's pricing policy.