Industrial Control Designline Blog
Here's our take on Intel-Wind River: What's yours?
George Leopold
6/8/2009 12:01 AM EDT
With its acquisition of embedded software leader Wind River Systems Inc., Intel Corp. has unambiguously signaled that it is again attempting to diversify beyond X86 processors. Intel has tried and largely failed in the past to expand into markets like ASICs and communications.
By acquiring Wind River and its open-source approach to embedded software development, Intel could change the game in the embedded market this time around by making, according to our Rick Merritt, "the Wind River Linux and RTOS variants first-class citizens on Intel's CPUs." In so doing, Intel also will effectively end the Wintel duopoly of the 1990s. Good riddance.
Meanwhile, in an interview with business editor Bolaji Ojo, an Intel spokesman said: "We have very ambitious plans to grow in the embedded area as a key part of our strategy to turn every electronic product into computing equipment. We are looking at multibillion opportunities in the embedded area, and while our software and services sales are nominal, [Intel's software] group is more strategic for the company's future." Even Intel, it now appears, sees more market upside and innovation potential in software than in microprocessors alone.
We polled our U.S. and European editors to get their take on the deal. Here are samples of their take. Make sure to let us know your take in the Forum below.
|
|
|
|
|
jyoshida
6/8/2009 11:22 AM EDT
We think this Intel-Wind River news is a huge deal. How will the acquisition impact your business?
Sign in to Reply
xjen
6/9/2009 3:36 PM EDT
My personal view is that Intel is entering into embedded software and services market to grow revenue and expand markets. They are following IBM's strategy and business model in managing hardware, software, and services.
Embedded software and services market is huge but too fragmented and is still envolving. Eventually it will be like the IT industry that a few standards, platforms, and frameworks dominate the market. And the scale of economy can lower the cost of ownership, reduce time to market, and accelerate ROI. Remember, IBM has tried to get into the embedded market few years ago and looked hard at wind River as a possible acquisition. Later it scrapped the entire business plan.
To validate this point, we should see that this is just the beginning of a series of acquisitions to establish a solid software and services business. Perhaps a software development tool company will be the next target.
Sign in to Reply