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HP, Intel Call it Quits on Itanium Partnership

envisionary writes "Hewlett-Packard Co. and Intel Corp. have ended their partnership to co-develop the Itanium 64-bit processor line, according to a report from Reuters. The move follows disappointing sales for servers based on the processor, according to the report. Intel and HP developed the processor about 10 years, but the chip has been a flop due to delays, cost overruns and lackluster demand."

20 of 302 comments (clear)

  1. AMD did it by emptybody · · Score: 3, Interesting

    The success of AMD in the 64 bit market has clearly had an effect. It will be interesting to see how the market takes this news.

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    1. Re:AMD did it by Glonoinha · · Score: 4, Insightful

      It's too bad HP didn't already have a long term successful 64 bit chip, all the engineers that designed it from the ground up, and 10 years of history with something like the DEC Alpha chip. That was a killer platform and some collaboration between Intel and whatever company held all the people that did the Alpha would have resulted in computer nirvana - unless the company that held all that Alpha history was run by a complete loser of a woman with the sole intent of systematically destroying the company and bringing a few other companies with it.

      Oh wait - that is exactly what happened.

      --
      Glonoinha the MebiByte Slayer
    2. Re:AMD did it by PygmySurfer · · Score: 4, Informative

      Actually, they had it twice... Alpha AND PA-RISC.

      *sigh*

    3. Re:AMD did it by Lisandro · · Score: 4, Insightful

      AMD did the smart move of extending the x86 platform with their new CPU architecture (complete with backward compatibility), and covering with it a lot of price segments. Never mind the and great performance and bang-for-the-buck value. I expect AMD to become bigger than Intel in the next 10 years, when 64-bits become mainstream. They already have the edge there.

      Anyway, the Itanium was too expensive, too incompatible and too slow compared to the rest. The only surprise here is that HP took so long to realize it was a money drain.

    4. Re:AMD did it by museumpeace · · Score: 4, Interesting

      who modded you "interesting?", you're trolling! [or did Carly lay you off?]
      HP did/does have great high performance platforms. I worked at DEC when the Alpha first came out and DEC had already been nervous about PA-RISC for a while at that point.
      The problem is, HP, like every other computer company, can't run a charity for good engineering by offering several 64 bit architectures and several OS's. They should have spun off something like "Legacy Computer Corp." a while back and let all the fans of the various high quality/low volume systems pay the real costs for continuing support. HP has been fighting to streamline their high performance catalog for over a year and surprise surprise: they have not pleased everyone.

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      SLASHDOT: news for people who can't concentrate on work or have no life at all and got tired of yelling back at the TV.
    5. Re:AMD did it by mrm677 · · Score: 3, Informative

      I expect AMD to become bigger than Intel in the next 10 years

      That is quite naive. AMD has close to 15,000 employees and is a $9 billion company. Intel has 85,000 employees and is a $140 billion company. This doesn't change overnight, and yes, 10 years is overnight when you consider companies of this size. Intel will have to make several more mistakes like Itanium. Plus AMD has a long ways to go to match the manufacturing capabilities of Intel.

    6. Re:AMD did it by Chris+Burke · · Score: 3, Insightful

      Alpha wasn't a proven market failure. DEC was a proven failure at marketing Alpha.

      HP deliberately carried on the tradition of poorly marketing the Alpha, because they were tied to Itanium. Yet still their Alpha solutions outperformed their Itanium solutions. If HP had been as dedicated to Alpha as they were to Itanium, then Alpha may have been a success. If Intel, who grabbed all the Alpha engineers, had joined with HP to promote Alpha as the 64-bit platform of the future, along with a commitment by Microsoft to support it (part of what hurt Alpha) then it would have had a much better chance of success.

      Alpha solutions with the marketing muscle of Itanium and the performance of, well, Alpha. Don't tell me that doesn't sound like a recipe for success.

      Itanium's main problem was that it was a CPU designed by compiler people. That it took several years for the compilers -- the thing that actually gets you the performance on Itanium -- to become decent was a big sign. The biggest sign to me, the one that told me Itanium was doomed, was the ISCA(?) paper by Intel that concluded that predicated execution for branch resolution -- one of the touted great ideas of the architecture -- wasn't worth much except in carefully hand-tuned code. Since the upside turned out not to be there, the downsides of in-order-execution (e.g. not being able to service more than one cache miss at a time) dominated. Since then, Itanium has been holding out by having big caches. That's not a long-term solution, though, since you can put big caches on any CPU as long as you can afford it -- see recent Xeon MPs.

      The funny thing is that Intel will simply double-think their way out of any embarassent, claiming that Itanium was always meant to only go in an ever-shrinking market segment until nobody remembers how they were promised the world and got a small pail of dirt instead. Besides, they still have mounds of cash and their IA-32 with NotAMD64 extensions. No, the real ones who are going to suffer are HP who killed off two good CPU lines and as a result are getting beaten up by IBM with the occasional sucker punch by Sun.

      And yes, that is entirely Carly's fault. If I was an HP employee, I'd be screaming for her head (for other reasons too, beyond the scope of this article).

      --

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    7. Re:AMD did it by museumpeace · · Score: 3, Informative

      I was being a bit lazy in pointing to my own comment [though it did contain the most current development ] on HP reducing its diverse hi performance options. Slashdot has covered this topic every step of the long, sad way:
      HP pruning the OS proliferation, HP repeats: alpha is really going away! and alpha chip to be discontinued
      oh, what a small world...just noticed HP's dropping TRU64 was a gain for Veritas which was the subject of a recent /. mention

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      SLASHDOT: news for people who can't concentrate on work or have no life at all and got tired of yelling back at the TV.
    8. Re:AMD did it by museumpeace · · Score: 3, Interesting

      ...poor management...
      yes, definitely poor management...I was one of the engineers, not one of the managers. The question is: whose poor management? Dec was NOT making it with any of its vax-on-a-chip designs...Intel was eating our lunch on $/FLOPS basis and that is what was selling systems at the time.

      That Compaq bought DEC for its customer list and Intel bought DEC microprocessor design/fab capacity to avoid a profit-hemoraging patent battle was vaguely sensible at the time. Is the management misstep you refer to the question of why did HP pick up a bunch of niche-market product lines [and my retirement plan :-( ] when they already had a competative product? Or is the mismanagment you refer to the steps they have taken since the acquisitions? We engineers assumed that Palmer, haveing run DEC semiconductor operations, would not have sold what we saw as the crown jewels. But DEC had something called share holders and it was in bad financial condition.

      Who was making the management mistake? the buyers or the seller?

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      SLASHDOT: news for people who can't concentrate on work or have no life at all and got tired of yelling back at the TV.
  2. Maybe it's just me, but... by CrazyDuke · · Score: 3, Insightful

    "Intel and HP developed the processor about 10 years, but the chip has been a flop due to delays, cost overruns and lackluster demand."

    Maybe it's just me, but I thought it was because it cost $900 for a CPU that did about a much as a 1-2 Ghz 32-bit processor.

    --
    Any sufficiently advanced influence is indistinguishable from control.
    1. Re:Maybe it's just me, but... by Anonymous Coward · · Score: 3, Funny
      Maybe it's just me, but I thought it was because it cost $900 for a CPU that did about a much as a 1-2 Ghz 32-bit processor.

      Mark my words, consumers will never have a need for a 64-bit processor. Itanium was toast from the start. 32-bit processing is good enough for anybody.

  3. Itanic sinks, great loss of money feared by IO+ERROR · · Score: 4, Funny
    The Itanic sank today on its maiden voyage. Most of us saw this coming. When Microsoft won't even get on board, you know your processor is in trouble.

    The Register coverage: Who Sank Itanic?

    Everyone has been saying that Itanic will sink for quite a while now; it's about time that HP and Intel realized they were pouring money down a drain and pulled the plug on the project.

    --
    How am I supposed to fit a pithy, relevant quote into 120 characters?
  4. Also... by StevenHenderson · · Score: 3, Insightful
    but the chip has been a flop due to delays, cost overruns and lackluster demand.

    However, I would venture to say that they lost a LOT of (at least casual) sales due to lack of backwards compatibility a la x86-64.

  5. Wow... by copponex · · Score: 4, Funny

    Slashdotters said something was going to die, and it actually did...

    I think I'm selling my iBook.

  6. Itanium failure as a chip, but... by Anonymous Coward · · Score: 3, Funny

    an enormous success as a space-heater.

  7. Sad to think that... by Anonymous Coward · · Score: 3, Insightful

    ...Digital's Alpha died for this miserable farrago.

    an ex-Deccie.

  8. Re:Bring back the alpha! by Anonymous Coward · · Score: 4, Insightful

    No. It basically means that HP will be gettng out of the high-end market and instead will sell outsourced designs from Intel or AMD. In other words, HP's tranformation to a shitty version of Dell will be complete in 3 years.

    HP will be selling Itanium for a long time because there's customers marooned on the IA64 platform now.

  9. History lesson - man behind Itanium deal by Anonymous Coward · · Score: 5, Interesting

    HP used to have an executive named Rick Beluzzo who sowed destruction and chaos wherever he went, much like Don Rumsfeld. My experience with him started 10 years ago when he was head of the computer group at HP - he liked Windows so much he decided that HP would become an NT server company, and would neglect Unix (a mistake that took years to correct.) And he made the Itanium deal with Intel, which ended up sucking billions out of Intel. Beluzzo then left for SGI, and drove it into the ground by stopping IRIX development and turning SGI into another NT clone builder. Beluzzo was then hired Microsoft (reward for loyalty?), and became their president - and was bounced a couple of years later. He's now the CEO of Quantum the hard drive manufacturer - good luck to them!

  10. Re:Not the End by Anonymous Coward · · Score: 3, Insightful
    If you look at the specfp numbers, Itanium is neck and neck with IBM's Power5 and everything else is significantly slower, like 30-40% slower. So it isn't as if Itanium is a total flop.
    The history of the industry is littered with powerful processors that never sold enough to justify their investment -- Alpha immediately springs to mind, but there have been many others.

    In the end, no matter how wonderful it is, if it doesn't sell it you have to move it over to the "total flop" category.

    Flip your justification around: POWER5 SPECfp is neck and neck with Itanium -- AND is compatible with a large existing customer base, AND has a developer following, AND has an ecosystem around it that includes low-end derivatives such as PowerPC, AND is run by a company that has more of a clue. I think POWER5 also may be less expensive, more flexible, have better thermals, do better SPECint and be easier to design compilers for. Given all that, where does Itanium get to play?

    Face it: the sole unique value proposition for Itanium is and always has been "We're Intel and we say you should use this." The one thing they could have and should have been able to offer -- performant compatibility with existing Intel processors -- they didn't do and they're paying for their arrogance big time.

  11. DEC did it Re:AMD did it by Anonymous Coward · · Score: 5, Informative

    It's too bad HP didn't already have a long term successful 64 bit chip, all the engineers that designed it from the ground up, and 10 years of history with something like the DEC Alpha chip.

    From someone who left HP R&D last year (not WFR'd, got tired of my job and moved to a different company):

    They had better than that. The folks that just joined Intel designed PA-RISC processors before moving to Itanium (sometimes refered to as PA-RISC 3). Those folks are top notch designers that have shipped succesful microprocessor products for 20 years. They already saved Intel's ass a few times in the Itanium collaboration. They designed Itanium2/McKinley entirely, and the upcoming Montecito is mostly a Fort-Collins design that replaces yet another Intel project failure (the codename and some of the most unpleasant parts of the design is all that remains), similarly it is rumored that Intel's Tukwila design (from the "famed" Alpha folks) is being ditched and will be replaced by yet another rescue design from Fort-Collins.

    One of their managers was fond of saying that those folks could create a Sparc processor that would top the performance charts (Sparc has been performing pretty poorly for the last 10 years). I believe that.

    Back when Alpha was in competition for the best performing microprocessor, its only real competition was PA-RISC. It was a leapfrog game between the two architectures. Since PA-RISC was never 'sexy' (few HP products are), the public only remembers Alpha, but reality was different.

    As to keeping Alpha, remember that PA-RISC had a marketshare about 5x the one of Alpha (~30% of the Unix volume, both in volume and revenue; Alpha was stuck around 5-6%). And PA was already on the way out when HP acquired Compaq. Not only that, but most Alpha folks had already left Compaq by then (mostly to Intel as a group, and individual to other companies). So Alpha was never an option for HP. So please stop spreading this myth that HP killed Alpha. DEC/Compaq killed Alpha before the merger.

    Regarding run by a complete loser of a woman with the sole intent of systematically destroying the company, I had the pleasure of working with some former engineers from "the old DEC". Some of them are excellent people. Overall, however, I saw a lot of bad attitudes that could sink a tech company. NIH, no concern for deadlines, shipping a real product or customer experience. Some of those folks are so wrapped in the memory of the golden years when DEC R&D was perceived as the best in the industry (while the real top talent has already moved on or retired), they don't realize what makes a company tick (pleasing customers).

    I am sorry to say that, while DEC/Compaq (and now HP) management might not have helped, I believe that the Alpha/Tru64 R&D folks played a good part in the killing of their products, by being a bit too much convinced of their own greatness and failing to see that this technical greatness did not help their customers. Their toys did not win in the marketplace, outsold by less sexy widgets built by less arrogant folks (including the PA-RISC and HP-UX teams). I do not like Carly much but she and her team are probably saving HP and what remains of DEC by keeping such bad attitudes in check (by cutting the teams that do not deliver). Being 'sexy' doesn't help much in the marketplace, and it doesn't seem to help much in HP anymore. Good, too much money was wasted on sexy things.

    People are rooting for the underdog, cheering AMD and boohing Itanium, longing for the good old time of technically pure Alpha. Yet Itanium is a very clean design compared to x86 / x86-64, and people forget some of the crap associated with Alpha (lack of byte loads on first generation processors, WTF !?). Such selective blindness is ok for teenagers in their basements, unfortunately they seem to be held by more senior folks who should know better.

    Our industry is in a pretty sad state. Perception, mindshare, hype and FUD matter a lot more than they should.