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Client Server NEWS 2000: Compaq Cans Transmeta Box

Nov 07, 2000, 17:48 (2 Talkback[s])
(Other stories by Maureen O'Gara)

"Compaq US won't be going with the Transmeta chip like it was supposed to according to highly placed sources both inside and outside the company. Compaq's Armada group, the Compaq unit that invested in Transmeta and has been designing with the start-up's revolutionary x86 Crusoe microprocessor, reportedly made the decision two weeks ago."

"If the report proves true, as we suspect it will, Compaq US will be Transmeta's second major American loss in the last few days and quite frankly the news couldn't come at a worse time...."

"A Compaq source says the Crusoe chip, which has reportedly been evaluated by both Compaq's commercial and consumer groups, 'meets neither performance or power promises, which leaves it kind of in the lab experiment stage. It would need to be about twice as good in both areas to produce a competitive advantage. It is interesting technology but not ready for the real world yet....To make it commercially viable it needs to be a winner in the base economic proposition, and more work is needed to get to that point. I'm sure that Compaq, like all the other major players, will continue to evaluate the potential of the product.'"

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