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Netstat -vat by Sean Michael Kerner (bio)

A command line view of IT



MontaVista Linux acquired by Cavium for $50 million

By Sean Michael Kerner on November 10, 2009 4:23 PM
Cavium_logo.jpg
From the 'Embedded Linux' files:

MontaVista Software, the pioneer of the modern embedded Linux market is set to be acquired by Cavium Networks in a deal valued at $50 million.

The deal which was just announced, includes $34 million in Cavium Networks (NASDAQ: CAVM) common stock and $16 million in cash. The deal is expected to close in December 2009.

With this deal, the two major embedded Linux vendors, Wind River and now MontaVista will be owned by semiconductor vendors. Wind River was acquired by Intel for $884 million earlier this year.

From a personal viewpoint, the trend of semi-conductor vendors owning the embedded Linux market worries me a great deal.

MontaVista this year made a big splash about supporting multiple market vertical and chips with its MontaVista 6 release. Will MontaVista now become a Cavium-only vendor?

Likely not, just like Wind River is not an Intel specific vendor. But still, it makes you wonder.

Linux is a strategic play for silicon vendors, plain and simple.

Perhaps there is a competitive advantage to be had for ensuring better performance on one particular vendor semi-conductors than anothers.

On the other hand, chips on their own are meaningless without the software and specifically the operating systems that give them true practical utility.
"Software is becoming an increasingly important part of the total solution with the rapidly increasing adoption of multi-core processors," said Syed Ali, President and CEO of Cavium Networks in a statement. "This acquisition will complement Cavium's market leading processor portfolio with world-class software expertise and will enable us to deliver highly compelling and differentiated solutions to the market."
In the short term, I don't expect anything to change in how MontaVista operates, that's the direction the Cavium press release sets too. Over time though, I'll be watching closely to see how that changes.

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