Intel last week bought for $884 million Wind River Systems, a venerable embedded operating system company — yet another of the chip giant’s recent forays into software. The reason for this purchase is both simple and grand — to help Intel vertically integrate and to further its Linux ambitions.  Intel’s ultimate target with this purchase is Microsoft.  It’s all about kicking Redmond out of the netbook business.

Netbooks are the big hardware success of 2009 and most are powered by Intel Atom processors.  The problem with PC’s in general and netbooks in particular is that they aren’t very profitable for Intel campared to the good old days.  Microsoft makes more profit from every Windows PC sold […]