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Intel said its Itanium line of 64-bit chips, designed for high-end server systems, is on schedule for release in the second quarter.
Sun, based in Santa Clara, Calif., has battled for years to offset a slow, steady decline in its primary high-end server business.
"You can't do the same things with a Dell server and a Sun high-end server, but the cost factor is not to be underestimated".
Early this year, Oracle completed its purchase of Sun Microsystems, which puts it in head-to-head competition with H.P. (and I.B.M). in the high-end server market.
The company had exceptionally strong sales of chips for high-end server computers that power corporate data centers and the Internet.
But Sun, based in Santa Clara, Calif., continues to be hurt by poor demand for its high-end server computer equipment during a prolonged slump in corporate technology purchases and a strong push by lower-cost competitors.
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High-end servers sell for more than $1 million, bringing higher profit margins for their manufacturers.
Hewlett-Packard's sales of high-end servers sagged while customers waited for Superdome.
HP and Sun want to bring technologies developed for their high-end servers to the rest of the data centre.
To cope with the upheaval, HP has been expanding into technology consulting, computer software, data storage and high-end servers made for companies and government agencies.
Intel's Itanium processor is a 64-bit chip designed for high-end servers that compete with similar machines from Sun Microsystems Inc. and other companies.
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