Intel Corp (INTC)

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Now Dell says it will include the 64-bit processors in servers running in scientific settings.
By Aaron Ricadela



Dell Computer will likely ship specialized servers containing Intel's Itanium 2 processor in coming months, reversing a July decision not to support the chip. Kevin Rollins, Dell's president and chief operating officer, says Intel's second-generation 64-bit processor "will probably start making sense in high-performance clusters. ... We're looking at shorter-term Itanium 2 uses there."
When Intel released Itanium 2 in July, Dell execs said the 64-bit processor hadn't yet displayed the performance benchmarks and compatibility with business software to fit Dell's mass-market computing strategy. Market researcher Gartner Dataquest forecasts just $77 million in revenue this year from Itanium-based systems.

Dell still doesn't think the Itanium family of processors is ready for general business computing, but improved test results and adoption among technical users means Dell will likely include the chips in servers designed to run clusters at research labs and universities and for certain industrial applications. Says Rollins: "We've never doubted that Itanium would be a winner. The question was, when it would be ready" for Dell's strategy?