There is lots of news on Intel’s purchase of Wind River Systems. The Wind River PR folks must like the Fool.com article as they point to this one on their home page.
Intel Has Wind in Its Sails
By Anders Bylund (TMF Zahrim)
June 4, 2009 | Comments (0)
Instead, Intel is getting much more serious about netbooks and handheld gadgets. The semiconductor titan is buying device software specialist Wind River Systems (Nasdaq: WIND) for $884 million in cash, or $11.50 per share. And on the same day, Intel released four new low-voltage processors for ultra-thin mobile systems. I can see a market focus taking shape.
The one sentence summarizing the value of Wind River to Intel is:
Intel gets a software development package that helps gadget builders make the most of their hardware.
Wind River’s annual report has a description of their value.
Wind River’s value proposition—enabling customers and partners to do more with less—is extremely compelling in today’s cost focused environment. Market forces driving the adoption of Device Software Optimization (DSO) are consistent with our strengths and core competencies. Increasingly, our customers, device manufacturers, are faced with shrinking time to market deadlines. The functionality requirements for devices are exploding, as the amount of software that differentiates devices is increasing significantly. Device and application performance demands are increasing. Higher device quality is imperative. And the pressure to reduce device costs is paramount. We believe the combination of these market forces have and will continue to help catalyze a shift from customers building device software in-house to buying commercial-ready solutions like the market leading solutions Wind River offers.
When you read this, you can see how you can describe Wind River as a green system developer, focusing on getting the most performance from the hardware.
There are some data center market leader who are focusing on this same idea of how to green their data center.
It is hard to believe that the ARM chip developers at Wind River see a long future. Where will these engineers and executives go? Given the popularity of the ARM chip, it is not hard to imagine a bunch of VCs seeing Intel’s acquisition of Wind River as an opportunity to fund development of new OS’s.