Intel has revealed more support for its server chipsets, signing a deal with Fujitsu to develop new enterprise-level servers.

The chip maker has agreed a deal with Fujitsu to jointly develop high-end servers that run Windows and the Linux operating system.

At first the company will concentrate on building systems around Intel's Xeon platform, with models going on sale next year.

By 2005 it should also be building larger-scale systems using dual core Itanium products. These will include 128 processor mainframe systems.

Although not one of the 'big four' server manufacturers (IBM, Dell, Hewlett Packard and Sun), Fujitsu has a good niche in building large, powerful servers, the so-called 'big iron' systems.

Intel has to see off AMD's planned big push into the server market with its 64bit Opteron processor, expected later this year.

"Fujitsu ship some of the most powerful systems in the world and it's a sign of confidence in Itanium that they are migrating across," said Alan Priestley, strategic marketing manager for Intel's Enterprise Server Group in Europe, the Middle East and Africa.

"It is a key player and wants to build very large-scale systems."

Intel last year persuaded market leader HP to migrate its Alpha server systems over to Itanium.

In exchange, Intel licensed HP's Alpha technology and is expected to include elements of it in the next generation of Itanium processors, code-named Montecito and Chivano. Montecito is likely to come out in 2004, while Chivano will probably appear in 2005.

Fujitsu has reorganised its 300-strong Linux development team and it is expected that they will be concentrating on using open source for its server management software.