September 15, 1997

PC Vendors Continue Workstation Assault Windows NT units coming from Compaq, Gateway, HP; Silicon Graphics to add NT By Bob Francis with Mary Hayes nnouncements from top PC vendors last week focused on a remarkably similar theme: attracting corporate users to grab a share of the emerging market for Windows NT workstations. Hewlett-Packard, Compaq Computer, and Gateway 2000 all unveiled NT workstations, and Unix workstation maker Silicon Graphics Inc. responded by saying it will add an NT system next year. HP's new Kayak workstations, like those of its competitors, are essentially high-end PCs with fast number-cru nching and graphics capabilities. The Kayak machines use Intel's latest Pentium II processors and advanced graphics port technology, and are aimed at business, creative, and technical users, according to Jean-Charles Miard, general manager of HP's performance desktop line. "We are hitting three different markets with our workstation: Downsizers, who are coming from Unix systems; upsizers, who are moving from desktops; and creative users, who are moving from Mac systems," says Miard. Kayak models use single or dual processors ranging from 233 MHz to 300 MHz, and are priced between $2,250 and $17,760. 'Real Battleground' Compaq announced the Professional Workstation 5100, which starts at $3,500 for a 300-MHz Pentium II version. "This is a real battleground for HP and Compaq," says Peter Ffoulkes, an analyst with Dataquest Inc. HP also jumped on the build-to-order trend, detailing organizational and distribution changes it says will let the company ship systems more quickly to corporate users an d compete better on price. "We think we can gain as much as 5% to 15% in terms of price flexibility," says John Gannon, general manager of HP's commercial desktop group. The build-to-order approach was pioneered by Dell Computer, which has rapidly become a top corporate PC supplier. Now, consumer-oriented direct marketers such as Micron Electronics and Gateway are trying to grab a bigger share of the corporate market. One user notes the advantages. "We're installing a big project using Dell servers, and we like the fact that we are dealing with our supplier directly," says Mark Cleinerman, manager of PC technology services at Dayton-Hudson Corp. in Minneapolis. Gateway, in North Sioux City, S.D., made its latest play for corporate users last week, unveiling servers based on technology it acquired along with the purchase of Advanced Logic Research Inc. this summer. They include the NS 9000, a high-end server with up to six Pentium Pro processors that's aimed at large departments or medium-sized busin esses. Pricing for the system begins at $13,000. Gateway also jumped into the NT workstation market with its E-5000 series, designed for graphics and technical applications. Prices begin at $3,599. The systems will ship this month, Gateway officials say. NT workstations are taking business from low-end Unix workstation vendors (see story, p. 118). In response, Silicon Graphics last week revealed plans to offer a workstation based on NT and an Intel processor in the second half of 1998. Silicon Graphics says it has no plans to abandon Unix or RISC-based Mips chips that power the rest of its workstations; it will offer the NT product as a low-end model. "We want to be the No. 1 workstation provider, and we need NT in our product mix to make that happen," says a Silicon Graphics spokesman. "We will differentiate our NT product with our graphics technology and overall system design expertise." Next year, Silicon Graphics is expected to use chips from Intel that use MMX2, Intel's second-generation multim edia technology. Analysts say MMX2 will include floating-point enhancements that will accelerate 3-D graphics. Sun Microsystems plans to stave off the NT charge with workstations later this year that use a forthcoming processor designed for low-end systems called the UltraSparc-2i, say sources. The 300-MHz chip is expected to deliver advanced floating-point performance in systems that cost from $5,000 to $12,000. Says Greg Weiss, an analyst with D.H. Brown in Port Chester, N.Y., "Currently, to get this kind of performance, you would need to spend $25,000 on a machine." Back to News in Review Send Us Your Feedback Top of the Page

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