Server startup using new Intel Atom chip

The market for low-powered servers appears to be a new frontier. SeaMicro, a Silicon Valley startup, is the first server company to use Intel's new 64-bit Atom chip.

SeaMicro had been using a system that included 512 32-bit Atom chips that did the work of 40 servers using Intel's conventional Xeon chip while using only one-fourth the power. SeaMicro will only need to use half that number with the new 64-bit chip.

Intel apparently developed the 64-bit Atom server chip to stake off competition from ARM Holdings, which makes low-powered microprocessors that dominant the cell phone market. ARM has recently announced plans to enter the server market.