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Intel competes with its PC server customers

Yet customers like Compaq, HP, Dell and the ilk are strangely silent

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An internal Intel report on the size and value of the server market has demonstrated that the chip giant is still hell-bent on capturing market share from anyone -- even from its PC customers. Last week we reported on the extent of Intel's greed in attempting to sell more of its high end multiprocessors. (Story: Intel aims to be No. 2 server provider by the end of 99) Eckhard Pfeiffer, the ex-CEO of Compaq, complained bitterly when Intel introduced its Inside scheme, but now the chip giant is likely to be subjected to even closer scrutiny. The internal report, which The Register published last week, shows that server systems it builds for its smaller OEMs will cut into sales from the likes of IBM, Compaq, HP and even Dell. That is likely to push the triumvirate which runs Compaq into pushing its Alpha platform even more strongly, while IBM, Dell and even fabbing partner Hewlett Packard are likely to be a tad miffed. At press time, no one from Intel was available for comment. But it is a matter of record that Intel has built so-called vanilla systems in the past. Four years ago, one of The Register's editors saw plain vanilla PCs shipped out of its Leixlip, Dublin plant. At that time, the vanilla desktops were being sold by the like of distributors Metrologie and others. Obviously margins have shifted. Intel does that no longer. Margins are different these days. ®

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