Corporate computing prepares to downsize

This is not really such a new move and Dell always used to have a higher percentage of the market than HP. However in the past year, Dell's market share has dropped because they have always stocked only Intel CPUs and the AMD Opteron CPUs are far better than the Intel Xeons. Recently, Dell has decided to stock AMDs to pull back some market share: http://www.xbitlabs.com/news/other/display/20060521085443.html.

The AMD Opteron issued in a new era of cheap multi-processor servers. Before that, Intel used to charge extremely high prices for their Xeon chips and if you wanted anything more than a 2 way system (posssibly 4, can't remember), you had to go with the Itaniums (not based on x86 architecture).

This coupled with new technologies like .NET which allow for easy development of interconnection, multiple small servers looks like the way to go.

The next expected move is towards distributed processing whereby excess processing power of clients on a network can be utilized to provide processing for the server. Hence reducing server costs further (although arguably increasing network costs).
 
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