Then came another micro-processor brand called Advanced Micro Devices (AMD).  For a while, AMD was simply an alternative due to its affordable price.  Users who are price conscious will opt for AMD rather than Intel.  Intel did release Celeron to counter AMD’s offering.  Over the years, AMD was able to transform its alternative status into a serious challenger to Intel's supremacy.  AMD was able to produce faster, more powerful and more reliable micro-processors that it was able to capture some market share from Intel.

In a recent press conference I attended, AMD showed the press their roadmap and why they should be treated as the leader now.  They explained to the press what their technology is all about and what differentiates them from Intel.  They also made some headway when computer companies like HP, Sun Micro Systems and DELL announced their AMD powered PCs and servers. 

The battle between Intel and AMD became more intense when AMD filed cases against Intel and the former filed cases against AMD as well.  The court battle clearly proves that both companies are dead serious in claiming the micro-processor leadership position.  But the legal battle is not the right court for both of them.  If they want to prove who has the better product they should fight it over in the technology space.  And that is what Intel is doing now.

Intel is now declaring war and is bringing the war to AMD’s turf.  Intel is attacking AMD on two fronts: price and technology.

Just recently, Intel slashed the prices for its PC processors by as much as 30 percent.  The price cuts has hurt AMD, forcing the company to issue a warning that its second-quarter revenue would be about US.22 billion, or about 9 percent below the previous period.  Although AMD is pinning the lower estimate on declining sales of processors for desktop and notebook PCs, analysts are saying the Intel price reduction has something to do with the AMD announcement.

And as they all say, when it rains it pours.  Intel has announced more price cuts coming and also announced the release of more new products, which Intel said will put the company back in the technological lead.  Intel recently introduced a desktop chip code-named Conroe and a notebook processor code-named Merom.  Intel recently released the Xeon 5100 "Woodcrest" family of chips as solid answers to AMD's technology.  Within the month, Intel will also launch its Montecito dual-core Itanium chipset, a chip designed to counter AMD 64-bit Opteron.  Intel will also release the next Xeon chip for multi-processor servers called "Tulsa".

The success of AMD can be attributed to its chipsets’ less power consumption and by beating Intel to the market with 64-bit features and dual-core capabilities with its Opteron processors.  Intel admitted that it has overlooked the power issue and said it has learned from its mistakes and is now focused on addressing an issue that is of growing concern to users.  Power was a driving factor for Intel's decision to speed up the timetable for chip redesigns.   Intel even sold its communications and applications processor business to telecom chip maker Marvell Technology for US 0 million to focus its investments on core businesses such as processors and emerging technologies like Wi-Fi and Wi-Max.

While we users are still getting our hands wet with dual-core technology, both Intel and AMD are preparing for the next generation of micro-processors: quad-core.  Intel already announced that their quad-core "Clovertown" will be released in the first half of 2007.  AMD officials also said the company will launch its quad-core processors by 2007.

Virtualization is another area where AMD and Intel are battling it out.  AMD dual core chips come with virtualization technology called Pacifica and a security technology called Presidio.  Intel also has its Intel Virtualization Technology (VT), formerly known as Vanderpool. 

Virtualization is technology that allows a computer to be partitioned in order to run different types of software simultaneously.

For as long as the world needs micro-processors, I believe the battle between AMD and Intel will go on and on.  Why?  I believe Intel doesn't want to destroy AMD.  Intel needs a competitor as a point of comparison.  But Intel wants AMD to be in a "value" box where AMD can't hurt Intel's high-end business, ASPs, and profits, just as Microsoft needs Apple, and Google needs Yahoo.

What I like about the recent developments is this:  users will now be able to choose the best technology without worrying about the price.  Pricing is now taken out of the equation.  Users can now decide based on the merits of the product.  Be it Intel or AMD, users can now enjoy the best of both worlds. 

Now that's competition at its finest.

*****

Announcement: 

1. Attend the Powertips/Manila Bulletin WirelessWorld Expo 2006 on July 21-23, 2006 at Rockwell Tent Makati.  Admission is FREE.

2. Tune-in to my new radio program entitled "Hi-Tech Tayo Pinoy", aired every Saturday from 3pm to 4pm on Veritas 846.

For your questions, comments, suggestions, press releases and stories, simply e-mail techtvhost@yahoo.com or visit www.infochat.com.ph for more articles.  God bless us all!