What I expect will happen is that this turns into a pretty aggressive battle between the two companies.
Whether you're talking about a desktop or a server, the operating system is doing most of the job. The application just tells the operating system to go do something, so anything you do to make the operating system faster makes the whole process faster.
This is definitely moving their products into a different segment. The product is targeted at a pretty good segment of the PC market right now.
There's been lot of expansion happening in the notebook computing space. That has helped Intel quite a bit, but they need to have something new if they are going to maintain their presence.
You are comparing an old system and old implementation against a new system and new implementation. I am sure this was one of the better examples that Intel found in its customer base.
It might add a little urgency to efforts that are already under way.
The important part about the server market is that the chips tend to sell for more, and so being successful there, in AMD's case, produces more resources that can be used in the desktop market.
These things will show how they are working to make PCs fit better into the home entertainment universe.
Intel constantly plows money into R&D and new production capabilities. The smaller firms just can't compete on their own, so alliances make sense.
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