Intel on Thursday said it would buy embedded software developer Wind River for $884 million in cash. The deal is mutual and is aimed directly at improving Intel's stance in the mobile space. As the purchaser, Intel expects to improve both its hardware and software in the field; it sees this as especially helpful for smartphones and mobile Internet devices but also anticipates Wind River helping anywhere embedded systems are useful, such as in-car media systems and set-top boxes.

Government approval is anticipated sometime during the summer, when Wind River will fold into Intel's Software and Services group.

Although Intel already has a footprint in very small devices through processors like the Atom and CE3100, most of its mobile initiative should come into force in 2010 when it releases Moorestown, a much smaller version of Atom that should be the first whose heat, power and space are minimal enough to be used in smartphone-sized devices. Intel also has its own operating system for small devices, Moblin Linux, and just recently released version 2.0 with a much more touchscreen-friendly interface.