Intel on Monday unveiled new dual-core versions of its Xeon server processor in an effort to catch up to rival AMD in the business market in terms of performance. AMD has had dual-core server chips available since April as part of its Opteron line.

The addition of the better performing processors got the attention of IT managers and likely was the key force in taking AMDs worldwide market share from 5.6 percent in March of this year to 7.4 percent in June, according to research firm IDC.

Such quick gains by AMD ostensibly pushed Intel's timetable forward. The company had initially said it would wait until 2006 to release dual-core processors for servers. In August, the launch was moved to the second half of this year.

"The availability of our first dual-core Intel Xeon processor server platforms accelerates the delivery of Intel's aggressive multi-core server roadmap, giving CIOs and IT managers innovative new technologies and capabilities to help grow and transform their business," said Kirk Skaugen, general manager of Intel’s Server Platforms Group.

Intels claims that the new chips will offer performance improvements over current dual processor 64-bit servers by up to 50 percent, which seemed to be confirmed by Intel partners who tested the chips.

Built into the new Xeons is support for hyper-threading, virtualization, security, and management technologies. The company says hyper-threading would allow a dual-core processor to almost act like a four-core system.

Several companies including strong Intel supporter Dell, as well as Gateway, Lenovo and HP among others announced servers and workstations based on the new Xeons that will launch within the next several months.

The first dual-core Xeon processor for servers will run at 2.8 GHz and will be available for $1,043 USD in units of 1,000. Additional models are slated for release within the next two months.

Intel also said Monday that a multi-core version of the processor known as "Paxville" -- a special version of the Xeon designed for machines with four or more sockets -- will be released in early 2006.