Mobile and embedded Linux consolidation has continued in a big way, the latest evidence being Cavium Networks $50m acquisition of MontaVista Software. As detailed in a report for 451 Group subscribers, we expected to see continued consolidation following Intel’s $884m acquisition of Wind River in June 2009, the advent of Google’s Android and Mentor Graphics’ bid for Embedded Alley. Although we continue to see a good degree of fragmentation with various Linux versions and efforts from Wind River, MontaVista, the Linux Foundation and others, there is no doubt that larger hardware players are envisioning a future full of embedded Linux. The best way for them to get there, it seems, is to partner with and acquire smaller embedded Linux software, services and specialty shops.

Similar to consolidation in mobile Linux, there have been several false starts and lots of hype for embedded Linux over the years. Nevertheless, it has now emerged as one of the main growth markets for the Linux operating system and those who use it and back it. When Microsoft sued device maker TomTom early in the year, many saw it aimed at embedded Linux and trying to derail it in embedded markets, where Microsoft has steadily lost to Linux. Regardless of whether the suit was aimed at stifling embedded Linux, I would reassert our assertion that there has been no impact on embedded Linux, which has continued to grow.

Those developing and basing business on embedded Linux point out its strength across the board, from military and aerospace (where open source may also benefit from a recent DoD memo) to telecommunications and other industrial control to consumer devices including smartphones to automotive uses, both for vehicle technology and onbaord information and entertainment systems.

The interest and investment of large players such as Intel, Mentor Graphics and Cavium is further validation that Linux, in its various forms, is the right fit for most if not all of these key embedded software markets. That also means we’re likely to see more …