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Advanced Micro Devices has added to its roster of CPUs two Opteron processors that will allow users to migrate from 32-bit applications to 64-bit applications as needed. Both were released Tuesday.

Opteron Model 146 is part of the Opteron 100 series, which is designed for single-processor, entry-level servers and for users who run large graphical applications such as computer-aided design (CAD), according to Steve Demski, product manager of Opteron One Series. Model 146 competes directly with Intel's 3.2-GHz Pentium 4 chip.

Opteron Model 846, meanwhile, is designed for use in four- to eight-way-capable servers, such as large databases, and is ideal for large enterprises looking to consolidate servers, Demski says.

Server Trends

"[Opteron] is unique in the market in that it has the 64-bit capability, but it continues to run existing 32-bit code," says Dean McCarron, principal analyst at Mercury Research.

AMD's Demski said that companies are eager to consolidate applications onto fewer servers. During the tech boom of the late 1990s, 2000, and part of 2001, companies commonly ran applications on different servers, but this approach did not yield great performance, he says.

Opteron 846 serves this niche by allowing users to run 32-bit and 64-bit applications simultaneously, according to Demski.

Operaton 846's main competitor is Intel's 2.8-GHz Xeon MP chip, though the new chip will also compete with Intel's Itanium in the high-performance computing arena.

"The distinction between Opteron and Itanium is that Intel's approach to 64-bit requires a completely new instruction set, so it doesn't run existing software at full performance," McCarron says.

AMD is currently enjoying success in the 64-bit market because its approach enables users to migrate from 32-bit to 64-bit as needed, he adds.

Market Battle

Because the new Opteron and Athlon processors are being released behind schedule, AMD's market share has dipped slightly over the past year, McCarron notes. Nevertheless, the company stabilized at 15.7 percent worldwide in the second quarter of 2003 compared to Intel at 82.5 percent, he says.

AMD launched Opteron in April. The company plans to release a 64-bit version of its desktop Athlon chip on September 23; the new processor will be compatible with Microsoft Windows platforms.

PCs incorporating Model 146 are currently available, and systems using Model 846 are expected to be on the market shortly, the company says.

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