Intel: We'll Grab 40 Percent of Big Server Market

The market is currently split 50:50 between various kinds of RISC (reduced instruction set computer) processors and Intel's 32-bit processor range.

With Itanium taking 40 percent of the market, 32-bit Intel chips would take a further 30 percent of the market, and RISC chips will take a significant hit, Morales claimed in a keynote address at Vietnam IT Week here Wednesday.

"From 50 percent of the market, RISC (market share) will fall to around 30 percent within two years. And it will keep going down," he said.

The demand for the servers will be largely Internet-related, for back-end systems and big data and hosting centers, according to Morales. The systems will run multiple Itanium processors -- four-way, eight-way and eventually 16-way, Morales said.

Already, more than 400 data centers have been built or are under construction in the Asia-Pacific region alone, Morales said.

The Itanium chip, which will be released in the first quarter of next year, is the end product of the biggest cooperative effort the IT industry has ever seen, according to Morales.

"Around 150 companies have worked with Intel on getting Itanium accepted -- companies making computers, operating systems and applications," he said. "It is going to be the engine of e-business."

Around 6,000 servers running Itanium chips are currently being tested and optimised worldwide, according to Morales.

The IT industry has grown from an $US80 billion business in 1980 to an $US800 billion in 1998, thanks to the availability of standard building blocks such as processors. The same driving force, and the emergence of the Internet, will see the IT become an $US8 trillion industry by 2012, Morales said.

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