HP Hints of Opteron Server

Hewlett-Packard is considering a different route to 64-bit technology than it has previously discussed, opening the door for HP servers based on processors that use extensions to the x86 instruction set.

"HP acknowledges customer demand for support from a trusted vendor for x86 extensions technology in certain vertical segments, where specific price-performance needs exist. HP is currently assessing our options in this area. We are not disclosing information about systems, partners, or availability at this time," the company says a statement released Tuesday.

HP now has few options for "x86 extensions technology." Only Advanced Micro Devices has released a processor that makes use of extensions technology with its Opteron chip. However, rumors persist that Intel is developing a processor that either mimics AMD's approach or uses a new method to add 64-bit capability to the x86 processors that run the majority of the world's computers.

AMD declines to comment on the possibility of HP releasing Opteron servers.

Already On Board

IBM and Sun Microsystems have already agreed to ship servers based on AMD's chip. Opteron features 64-bit extensions to the x86 instruction set that increase the amount of memory the processor is able to address. It also comes with interconnects based on the Hypertransport standard and an integrated memory controller that helps improve 32-bit performance.

Many analysts and users think Opteron's competitive advantage is its capability to run 64-bit applications as well as 32-bit applications on the same server. This allows users to port their applications to 64 bits when they need the extra performance without having to buy a new server.

Right now, users can take advantage of the 64-bit capabilities of Opteron only if they are running operating systems such as Linux from SuSE Linux or Mandrakesoft. A beta version of Microsoft Windows Server 2003 is available, with a production version expected in the second half of 2004.

HP is unique among the other major server vendors in its support for the 64-bit Itanium processor it developed in partnership with Intel. HP Itanium servers represented about 90 percent of all Itanium servers sold last year, said Charles King, research director at The Sageza Group.

Tight With Intel

Because of HP's close relationship with Intel and its 64-bit processor, many analysts doubted HP would risk that relationship by jumping on the AMD bandwagon, even after Sun and IBM made their announcements. However, HP's statement seems to be signaling that demand is building for a 64-bit product on the low end of the server market.

HP is the leading vendor of 32-bit servers based on Intel's Xeon processor, and it wouldn't want to risk that market position if Opteron caught on with IT buyers, says Nathan Brookwood, principal analyst with Insight 64. If Sun and IBM are able to get customers interested in their products with Opteron, there is a chance that HP could lose sales of other products to those companies, he adds.

HP might also be able to segment its server businesses without offending Intel, says Gordon Haff, an Illuminata analyst. Opteron and Itanium, although both 64-bit chips, do not really compete against each other, he says.

Itanium is designed to replace the reduced instruction set computing (RISC) chips such as Sun's UltraSparc or IBM's Power 4 that run high-end servers for corporate databases or complex high-performance computing tasks, Haff says. It uses a different instruction set from the x86 instruction set found in most of the world's PCs and low-end servers, which means that applications developed for x86 systems are incompatible with the Itanium processor.

Intel's Next Move?

Opteron stacks up against Intel's 32-bit Xeon processor, Haff says. Xeon is currently the processor of choice for servers with between one and four processors, holding more than 80 percent of that market.

If HP decides to release servers based on Opteron processors, Intel will feel pressure to release a chip that extends x86 technology to 64 bits, even if they don't necessarily follow AMD's path, Haff says.

There has been speculation for years that Intel has a x86-64 chip stashed away somewhere in its product development cycle, but the company has refused to discuss that possibility with reporters beyond stating that it will follow customer demand for such a product. An Intel spokesperson declines to comment about future plans for a 64-bit processor with the x86 instruction set.