Intel's Paul Otellini outlined a number of developments taking place behind the walls of the chip-maker's research center on Tuesday, including an advancement promising lower costs in datacenters and high-end workstations.

Following the release of its new Penryn processors yesterday, the Santa Clara Calif.-based chip maker told over 40,000 registered guests of Oracle's Openworld conference that it aims to support virtualization not just in its CPU's, but across its whole platform.

As an example, the Intel chief noted that some tasks will slow down performance even with the best virtualization software.

Without hardware support, IO (input-output) for virtualization becomes a tremendous task, Otellini explained.

The company said it will add virtualization support inside its motherboard chipsets, which connect the CPU to the memory, and other devices.

Virtualization is becoming a popular buzz-word across many IT circles as the technique promises to leverage today's faster computing power more efficiently. Without it, high performance servers can spend a majority of time waiting for their next instructions, putting to waste the money spent buying the machines in the first place.

Virtualization solutions can switch in-and-out multiple operating-systems, consolidating multiple servers , and ensuring systems run near peak capacity.

Intel is working with the Peripheral Component Interconnect (PCI) special interest group to have its platform adopted industry-wide. It is also working with software vendors as well.

We don't just build the hardware, said Otellini, but we are working with key players in the virtualization software ecosystem to bring better products to market and have better products work better with our hardware.

VMWare, the industry's leading virtualization provider and recently a $1.1 billion IPO, has been working closely with Intel to make the software company's product perform even faster.

With VMWare we've put a micro-architecture instance into our hardware to help reduce the latency switching between virtual machines, or moving to one rack [server computer] to another, Otellini said.

Interestingly enough, there was no mention from the chip-giant of collaboration with Oracle on its own virtualization solution, which was announced just one day prior.

Oracle, the world's second largest software company behind Microsoft, will conclude its enterprise software conference on Nov. 15. It began on Nov. 11.

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