Intel is moving into the business of providing Internet dataservices, Gerry Parker, executive VP of Intel's new businessgroup, said yesterday at a gathering of industry analysts.In the latest move to generate demand for powerful Intelprocessors, the company has started a new division to builddata centers for Web application hosting, storage, anddelivery of Web content.
The operations, effectively server farms, will cost $50million to $100 million each and house 2,000 to 5,500servers, which Intel will buy from PC vendors. The first,across the street from Intel's Santa Clara, Calif.,headquarters, will house data for Excite, an Internetservice provider, and Pandesic, a Web-hosting venturebetween Intel and SAP for small businesses. The site willemploy about 50 people and will open in September to otherNorth American customers.
Mike Aymar, general manager of Intel's Internet dataservices group, said he expects to have "in the tens" ofsuch operations up and running over the next few years.Sites will be located around the world to mirror eachother's data for faster access. The new division will hostdata for ISPs and will also sell its services directly tomidsize and large companies through a direct sales force,Aymar says. Intel plans early next year to include Webapplication development services for sites to take advantageof the processing power of its latest chips.