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Intel Plans Channel-Only Xeon Priced As Low As $200

Intel plans to offer a channel-only server processor--based on its new Bensley platform--that some system builders expect to be priced at about $200 after rebates.

Pat Taylor, president of Proactive Technology, a Carrolton, Texas-based system builder and member of Intel's board of advisors, told about 350 Intel premier partners at the Intel Solutions Summit in Scottsdale, Ariz., that the chip giant would offer a low-cost, dual-core Xeon processor exclusively for the channel.

"The message is that on servers, desktops and whitebooks, Intel is bringing out channel-only SKUs," he told CRN Monday in an interview after his keynote speech.

Few details on the offering were available, but system builders said they expecte Intel to offer an aggressive rebate on the product to bring down the price. Steve Dallman, Intel's director of distribution and channel sales and marketing, has said that this year Intel expects to offer channel rebates on its new CPUs to help spur the adoption of dual-core technology.

One system builder, who asked to remain anonymous, said Intel will likely offer a dual-core Xeon for the Bensley platform that runs in the 2.8GHz range, the low end for that class of product. But he said rebates could bring the price down as low as $200 to help system builders compete with aggressive pricing on branded systems.

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