Intel presses ahead with Xeon launch

By Tony Hallett, 1 July 1998 11:48

NEWS Intel went ahead with the launch of its Xeon chip yesterday in spite of much publicised problems when it is used in four processor servers. Speaking at the product's London launch event on Tuesday, Rob Eckelman, Intel general manager EMEA, said: "We are moving for the first time beyond the traditional PC market into the most demanding segment of the market." Besides servers, Xeon processors - which have been branded to avoid confusion with Pentium II processors for mid-to-high-end PCs and Celeron PIIs for budget PCs - will also be found in powerful workstations used by companies in the financial, design and engineering markets. The 400MHz Xeon chips are based on Intel's 0.25micron P6 architecture, and offer either 512KB or 1MB of L2 cache. But unlike recently announced Celeron Pentium IIs, Xeon processors with 512KB secondary cache will sell for $1,124 each in 1,000-unit quantities, with the 1MB L2 cache chips priced at $2,836 in 1,000-unit quantities. Joe D'Elia, associate director at Dataquest, said: "This product should go a long way to compensating for the low margins Intel is currently experiencing in the PC marketplace."

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