Intel is spreading its software wings with the $884 million acquisition of Wind River Systems, which develops operating systems, middleware and software design tools for a variety of embedded computing systems. Intel said the company will become part of its strategy to grow its processor and software presence outside the traditional PC and server markets and into embedded systems and mobile devices.
“This acquisition will bring us complementary, market-leading software assets and an incredibly talented group of people to help us continue to grow our embedded systems and mobile-device capabilities,” said Renee James, an Intel vice president and general manager of the company’s software and services group. “Wind River has thousands of customers in a wide range of markets, and now both companies will be better positioned to meet growth opportunities in these areas.”
A Multibillion-Dollar Opportunity
Embedded systems and mobile devices include smartphones, mobile Internet devices, other consumer electronic devices, in-car “info-tainment” systems, networking equipment, aerospace and defense, energy and thousands of other devices.
Intel sees this multibillion-dollar market as becoming increasingly connected and more intelligent, requiring supporting applications and services as well as full Internet functionality. Analysts said Intel is poised to make a notable entrance.
“This is a market where the individual processors, in some cases, cost a few pennies, but volume is king,” said Charles King, principal analyst at Pund-IT. “The opportunity is more than just selling a handful of expensive processors, but it’s a matter of selling billions or tens of billions of tiny processors. That type of volume market is one that Intel knows very well how to play in.”
Squeezing the Competition
As an Intel subsidiary, Wind River will continue to develop commercial-grade software platforms that support multiple hardware architectures that are optimized for the needs of its many embedded and mobile customers. The company’s client list includes…