Intel invests in embedded Linux operation

XScale is the follow-up to Intel´s StrongARM chip, aimed largely at mobile devices and embedded systems. Intel´s investment, like its stake in LynuxWorks (formerly known as Lynx Real Time Systems), operates at two levels: it’s about promoting software development on one of its processor platforms, ideally resulting in greater chip sales. It also operates as a straightforward VC investment - the embedded space is highly lucrative, and Intel is banking on MontaVista growing significantly through is efforts in that market.

Income from smart investments is a growing part of most major IT companies´ revenues, as they use spare cash to seek later rewards by banking on potential IPO successes.

Embedded Linux still has a certain financial lustre. Intel´s investments in Linux companies include stakes in TurboLinux, SuSE, Red Hat, VA Linux Systems and eSoft.

Source: Register.co.uk / Tony Smith