This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Microsoft Nixes Intel's Itanium Chip

An upcoming Microsoft (MSFT - Get Report) software product for clustered servers won't run on Intel's (INTC - Get Report) high-end Itanium 2 chip, according to a report first published on Instead, it will be optimized for a more mainstream type of server chip from Intel and rival Advanced Micro Devices (AMD - Get Report).

Itanium, which debuted in 2001, has long been rapped for failing to gain a level of market acceptance proportional to its high design costs. The latest news signals that Itanium will at least initially be left out of a server market that has gained increasing sway in the computing world.

Clustered servers -- linked networks of servers, which each contain only two or four processors -- were first viewed as a low-cost alternative to bigger, more expensive hardware. But they have quickly scaled the ladder to become important in high-powered academic and industry settings as well.

Of the world's 500 most powerful supercomputers, 296 systems were categorized as clusters, according to twice-yearly rankings released last week .

Microsoft's Windows Server 2003 Compute Cluster Edition, which is expected to be released in the second half of 2005, is the first product the company has designed specifically for clusters, according to a company representative.

Microsoft's decision not to run the software on Itanium comes after earlier news that Hewlett-Packard (HPQ - Get Report) will stop offering Itanium-powered workstations .

"It does show how Itanium is increasingly being redefined as a niche market solution for mainframe-class datacenter applications," said Krishna Shankar, an analyst at JMP Securities. "Itanium seems to have had the most success in very data-crunching intensive applications."

But he called the decision "not necessarily negative for Intel. What they lose in Itanium they make up with more Xeons." Intel's Xeon chips dominate the server chip market, though AMD has recently shown some momentum with its competing Opteron server chip. Opteron is a chip that scales up to take advantage of software optimized for high-end data crunching.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SUNW $2.77 -2.81%
AMD $3.60 -3.40%
INTC $31.11 -2.00%
HPQ $12.57 -1.50%
IBM $147.07 -2.30%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs