Web appliances - Linux drives wedge between Intel and MS

Intel and Microsoft's close bond in the PC market is in danger of being stretched to breaking point as the two giants prepare to go head to head in the emerging Web appliance market.

Intel and Microsoft's close bond in the PC market is in danger of being stretched to breaking point as the two giants prepare to go head to head in the emerging Web appliance market.

The chip vendor has just announced plans to release consumer Web appliances which will use the Linux operating system rather than Intel's former ally, Windows. The appliances will compete directly with Microsoft's Web-TV and Web Companion.

The devices will run Linux and use Intel's budget Celeron processor when released later this year. The move is a blow to Microsoft, particularly its Pocket PC, formerly called Windows CE, which it says is ideal for Net-enabled devices.

Peter Lemon, analyst at IDC, said: "Microsoft's traditional message is 'we have the bigger and better operating system', but this doesn't work for appliances. Intel and Microsoft have been partners for 15 years, but Microsoft is being cut out."

Lemon believes Intel chose Linux because it can have more control. "Linux is ideal because it has a small footprint compared with Windows and is easy to configure," he said.

Intel's devices will be resold by telcos and service providers as part of an Internet package. Claude Leglise, vice-president of the architecture business group at Intel, said: "We will focus on providing telcos and service providers with a cost-effective platform on which to offer services and remotely manage the new appliances."