IBM took an unusual step last week when it announced it would use the Power PC chip for its range of network computers, which are due to ship later this year.
But the IBM network computer may have missed its window of opportunity, according to a highly placed source at Big Blue in the UK.
He said that while IBM was developing the technology, internal wrangles between different divisions had stymied chief executive Lou Gerstner?s efforts to establish the IBM network computer as a standard.
Motorola, however, is likely to benefit from IBM using the 403GCX chip in its NCs, because of the two companies? joint development alliance.
The 403GCX chip is an embedded product likely to find its way into telephones and other systems including cable modems.
IBM?s announcement about the Power PC chip coincided witha price drop of five per cent on other Motorola embedded Power PC processors.
The move will increase the pressure on Intel, which has wanted to enter the embedded arena. But despite the chip giant?s sporadic attempts to make inroads into this market, Motorola has continued to dominate it.
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