Wind River to Wind Up at Intel

Intel Corporation has recently signed an agreement to acquire Wind River Systems, Inc. for $884 million.  Wind River Systems is a leading embedded software company that develops technology for use in smartphones, mobile Internet devices as well as car entertainment systems.   Its impressive client base is composed of NASA, Hewlett-Packard, Boeing, Motorola, Samsung and Apple to name a few.

About Wind River

Wind River Systems, Inc. was founded in 1981 and has since established a reputation for being a leader in device software optimization.  Over the years it has consistently developed premium quality platforms that can be utilized in a variety of devices.  It has its own proprietary operating system, VxWorks and also offers Wind River Linux, a Linux-based operating system designed for embedded devices.

Aside from software and middleware, Wind River also provides solutions and services for the automotive, aerospace and defense and industrial industries.  There are a host of other first rate products and services under the Wind River brand. 

What this Means for Intel

Wind River Systems brings to Intel a massive portfolio of products and services, and this agreement now makes Intel not only a microprocessor company but also a potentially  huge player in the software industry.  Experts have reason to believe Intel is making plans of going into the software market as some of its most recent acquisitions are that of software-based companies.  If this is so, then software will no longer be relegated to the background at Intel, rather it’s now one of the main sources of revenue for the company. 

The Wind River buy certainly extends Intel’s product range considerably and this makes the semiconductor a sort of one-stop shop for technology needs.  It can now offer not only processors but software and services as well.   Experts do say that the buy is indeed a very good move for Intel not only because it extends Intel’s reach in terms of product and service range but also because it presents an opportunity to develop more partnerships – with other companies, with clients and customers.

Intel’s entry into the market however, will have its share of challenges.  For instance, if Intel wants to penetrate the mobile phone market with the Atom chip, it must realize it will compete with the likes of Samsung and other mobile phone companies which use solid ARM chips.  There have been previous failed attempts by Intel to penetrate the chip market which goes to show that accomplishing success in this market isn’t as straightforward as it may appear.

What this Means for Wind River

For Wind River, this development is seen as a sign of even better things to come.  Although the acquisition will result in a few layoffs largely because of redundancy issues, executives at Wind River sees this as an opportunity for the company to achieve further growth.  Being a wholly-owned subsidiary, Wind River executives do not expect any major transformations in the way they will go about their business.  The Wind River brand will be retained, and, according to Wind River, the company will continue to develop products and services according to the business architecture of the company. GP