Intel's Itanium2

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Case Details:

Case Code : BSTA081
Case Length : 17 Pages
Period : 1994 - 2003
Organization : Intel
Pub Date : 2003
Teaching Note :Not Available
Countries : Global
Industry : Information Technology, Semiconductors

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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These products and others we will deliver this year are the result of Intel's commitment to innovation and investment in technology, research and development, manufacturing capabilities, and digital computing and communications architectures. Each is a reminder of the value of technology that focuses on market requirements and bringing value to the customer. Success will come from continuing to push technology to create new benefits, new uses and new levels of value for customers.

- Craig Barrett, CEO, Intel1.


In early 2003, Craig Barrett (Barrett) the CEO of Intel, the largest producer of microprocessors in the world, was reflecting on the prospects for the company's new 64-bit microprocessor, the Itanium 2. Intel had been spending billions of dollars on Itanium 2 to take on IBM and Sun Microsystems [Sun] in the $ 25 billion market for the 64-bit servers. Barrett realized that Intel could not afford to repeat the mistakes made in case of Itanium 1.

Itanium processors were 64-bit chips, specifically designed for high-end enterprise and high-performance applications, like business intelligence, databases, enterprise resource planning, supply chain management, high-performance computing, and computer-aided engineering.

The Itanium 2 processor was the second in the Itanium processor family. But Intel faced major challenges in gaining acceptance for Itanium. The shift to 64-bit computing was not merely a matter of upgrading the Pentium...

Excerpts >>

1] Intel Developer Forum, San Jose, California, 18th February 2003.


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