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Wednesday, June 1, 2005
HP to use Intel chips in costliest servers
Hewlett-Packard Co. said its most expensive servers will now use Itanium computer chips, the last step in a plan to switch the company's fastest computers to Intel Corp. processors it helped develop.
NonStop servers, which start at $400,000 and offer features from more-expensive mainframe computers, run twice as fast with the Itanium chips, Palo Alto, Calif.-based Hewlett-Packard said yesterday in a statement.
HP's Itanium server sales rose 92 percent in the first quarter, the company said.
That helped boost No. 2 HP's share of the worldwide server market to 27.6 percent from 26.7 percent.
HP also cut the lead held by IBM Corp., whose share fell to 28.3 percent, said researcher IDC in Framingham, Mass.
"HP doesn't have a mainframe computer, but this is something that can compete with one," said IDC analyst Jean Bozman in San Mateo, Calif.
The company worked with Intel, the world's largest chipmaker, to develop Itanium and in January added the chips to the Integrity server line to reduce the number of processors it uses, said Mark Hudson, vice president of marketing for HP's storage and servers.
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