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Intel Aims to Steal Sun Thunder: Page 2 of 3

"Our goal is to offer OEMs double the performance at half the price of Sun's [low-end Netra series]," Gupta asserts.

But it's going to take awhile for the plan to work. For one thing, Intel can't yet state that its Pentium-based servers are as fast or as scaleable as the Netra series. That's because Netra is based on more powerful RISC (reduced instruction set computing) chips.

Intel admits it's not able to compete at RISC levels yet, but just wait, say spokespeople. "There are a lot of things these servers can do right now -- storage control, authentication, and firewall servers," Gupta says. "The platforms are in trials with OEM customers for release in the first or second quarter of 2002." But the kits' real value, he says, will come when Intel adds its own high-performance Xeon and Itanium chips, which feature RISC-like capabilities, in 2002 and 2003.

Sun doesn't seem to be running for cover just yet. "Anytime a competitor comes to market it validates our approach and we need to keep on our toes," says Bret Martin, senior manager of network equipment provider (NEP) systems at Sun. But he says he's "uneasy" looking at Intel's new server building blocks -- and not because he's afraid of the competition.

"This [market] requires a whole server systems approach that includes not only the systems but operating software, middleware, network communications, all of which we offer... not just one thing." To Martin, a ruggedized chassis with a Pentium motherboard doesn't fit the bill.