Performance to Determine Market Acceptance
Although there are significant differences between the design of the Intel 7300 series quad-core CPUs and AMD's Barcelona quad-core CPUs, both companies have given OEM customers time to undertake their own appraisal of the new systems, and both are providing testing services. With both of the leading CPU suppliers undertaking market segmentation based on server processor performance, power, and energy conservation, the intense competition that is now developing bears a strong resemblance to the situation when dual-core processors were first introduced.
At the same time, server OEM manufacturers are continuing to develop new applications for dual-core CPUs. In particular, the development of single-threaded applications will help to maintain the popularity of four-way and higher servers (both dual-core and quad-core) over the next few years. AMD and Intel will need to develop examples of effective virtualization in quad-core applications. Both companies are continuing to strengthen their capabilities in the area of virtualization technology; by embedding virtualization components in their products, they are making it possible for quad-core processors to handle virtualization more efficiently.
The server manufacturers in the AMD and Intel camps have been constantly comparing the two companies' quad-core processors. The main difference between them is that, whereas AMD has focused on all-in-one quad-core design, Intel has basically created its quad-core processors by putting two dual-core chips together. Comparison of the two firms' technology roadmap has focused on the switch from 65nm to 45nm technology.
Both camps have been using similar sets of criteria to evaluate their products. AMD and Intel both claim that their solutions provide the best possible performance, and performance is the issue on which the competition between the two companies will continue to focus. Customers will need to make their own decision as to which company offers the best products. They will also choose whether or not to use these CUPs based on the results of preliminary, small-scale deployments, as well as the objective appraisals by system manufacturers, distributors, and service providers.
Virtualization and Energy-saving Technology to Stimulate Demand for Quad-core Processors
Judging from the number of server CPUs shipped, it can be determined that dual-core CPUs have so far maintained their status as the market mainstream. Although quad-core processor shipment is likely to double in 2008, the transition from dual-core to quad-core will not be as rapid as the shift from single-core to dual-core did; for most applications, dual-core architecture is still perfectly adequate. Even so, the intense rivalry between AMD and Intel will certainly speed up the adoption of quad-core CPUs.
The early stages of the shift from dual-core to quad-core CPU architecture will be driven mainly by supply-side factors. How rapidly the process progresses will depend heavily on ISV (Independent Software Vendor) adoption, and on how widespread the adoption of x86 server virtualization technology becomes. While dual-core CPUs will remain as AMD's and Intel's mainstream products for some years yet, user experience and the introduction of new applications will stimulate steady growth in quad-core CPU shipments.
Whenever a new server platform is introduced, the market expects it to provide performance superior to that of existing platforms at the same or lower cost. With the introduction of quad-core CPUs by AMD and Intel, virtualization and energy-saving technology have become important indicators for gauging the extent to which new architecture offers improved performance. Intel's 7300 series processors have already gone a long way towards meeting customers' expectations in terms of higher performance, enhanced memory capacity, and larger I/O (Input/Output) bandwidth.