Intel drives SuSE deal to put Linux on map

Intel has inked a $12.8m (£8.5m) deal with Nuremburg-based software firm SuSE to drive Linux development on its platform.

Intel has inked a $12.8 million (£8.5 million) deal with Nuremburg-based software firm SuSE to drive Linux development on its platform. The Linux specialist will receive a total of 12 million euros from Intel and venture capitalists Apax Partners for marketing and brand development.

Global sales and support offices will be set up. The German firm claims to have 50,000 clients across the globe and hopes to establish a large network of business partners.

Tim Keating, EMEA content group director at Intel, said: "Intel has invested in SuSE because we want to encourage the diffusion of Linux on Intel-based computers in Europe. Intel's focus will be the Pentium III Xeon processor and eventually the Itanium processor."

If Linux is to be used with the chip maker's Xeon processor, it is less likely it will be used in the workstation environment, as top vendors start to marginalise high-end chips to server products only.

Hewlett-Packard is dropping Xeon from its Vizualize and Kayak lines following poor sales of machines incorporating the chip. Dell has also admitted that it will not be adopting the newest versions of the Xeon family for its workstations, although the direct vendor claimed it would pick up later versions.

HP has claimed there is very little performance difference between a PIII workstation and a PIII Xeon workstation, compared with the much higher cost of the Xeon chip. The Vizualize and Kayak lines will now rely on the normal PIII chip or HP's own PA-RISC processors.

Intel looks set to lead an offensive to beat the threat posed by AMD following the PIII shortage the vendor has experienced. It has been reported that the chip giant is to cut the prices of its Coppermine chips on 12 December, earlier than expected, and it is also to launch its new processor, codenamed Timna, aimed at the sub-$600 PC market.