64-bit addresses two things, mainly. More memory, and faster/larger computations.
The Win2003 server supporting 64-bit will primarily end up being used for SQL server.
The WinXP 64-bit edition will primarily end up being used for apps that require a lot of computations. Some engineering apps, some CAD, some GIS... specialized scientific modeling tools.
Both are pretty special purpose, but it adds a large feather in the cap of Microsoft because now people have a choice over using Sun equipment.
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