IBM seeks to push Power chip into new markets

IBM on Wednesday made a raft of product and partnership announcements intended to help push its Power microprocessor beyond servers to an array of corporate and consumer devices.

IBM is observing a sea change in chip design: The industry is near the limits of the gains it can wring out of hardware advances, executives said. Future chip improvements will need to come from better integration of chips with the systems they run, in IBM's view.

"Integration eclipses gigahertz, going forward," said Bernie Meyerson, who heads IBM's semiconductor development. "You can't make things smaller forever. What happens when the individual layers in your transistor get down to the dimensions of what they're made out of, which is, roughly, atoms?"

IBM plans to address that challenge with two approaches that have been a foundation of its corporate strategy since Sam Palmisano took control as IBM's chief executive. First, it will abide by its "on-demand" mantra and focus on a flexible, holistic approach to chip design, treating software and other system components as key to technical advancements, said Vice President of Technology and Strategy Irving Wladawsky-Berger. Second, it will work closely with outside partners.

Toward that end, IBM announced new licensing and manufacturing options and plans to build a community of development partners around its Power architecture. Sony has licensed the Power technology for use in future consumer electronics, and will work with IBM to customize the chips it will use.

IBM had a selection of partners and customers on hand to endorse its development strategy.

"It's not about an architecture, it's about the combination" of chips with other hardware and software products, said Red Hat's Executive Vice President of Sales Alex Pinchev. IBM's Power chips in combination with Red Hat's Linux operating system have driven improvements in system virtualization and manageability, he said.

Representatives of Hong Kong-based Culturecom Holdings Ltd. spoke of their forthcoming native-Chinese processing technology, under joint development with IBM since 2001.

"The ability to process in Chinese directly, without any translation software, will bring the cost for computing down tremendously," said Henry Chang Manayan, Culturecom's executive director.

IBM also previewed at the event its Power5 processor, due out in the second half of the year, and announced that it will begin shipping in April blade servers based on the Power architecture.

One analyst attending the event said IBM's development strategy differs significantly from those of its chipmaking rivals, including Intel Corp. and Sun Microsystems Inc.

"IBM is creating a computing ecosystem that can be pushed up or down. I can't really think of anyone else who is doing that," said Charles King, research director of infrastructure hardware for Sageza Group Inc. "Intel has taken a very different approach, of creating specific processors for specific markets."

King said he expects IBM's strategy to be a successful one, and sees the Power architecture as an emerging industry standard. He also noted that IBM's plans to open its development process gives the company access to a broader talent pool than is available to more proprietary designers.

"You get smart people to help you, and you see where that leads," King said.

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