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Intel makes another Linux investment

by John Geralds in Silicon Valley

14 Oct 1999

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Intel dug into its coffers again this week and made its third investment in a Linux-related company, TurboLinux.

TurboLinux received a undisclosed amount from the giant chipmaker, which usually invests up to $5 million. TurboLinux also received $5.5 million from venture capital firm, August Capital, plus an undisclosed amount from Broadview Ventures.

According to Cliff Miller, chief executive of TurboLinux, the infusion of dollars will be used to expand management, to conduct more marketing and branding, and for research and development. "For us, it's a big deal because now we can go into fast-forward mode," he said.

The company also announced three bundling pacts. In one, Sanyo Electric will install TurboLinux in 20,000 medical workstations over the next four years. The workstations consist of an Intel-architecture computer based on a 433MHz Intel Celeron processor, plus monitor, printer and medical software.

In a separate agreement, TurboLinux and Dell have entered into a bundling deal in which Dell will ship TurboLinux on its Precision Workstation series in Japan. As part of the agreement, customers can buy Linux support services from TurboLinux through Dell's DellWare program.

And SMC Networks has signed a bundling agreement with TurboLinux to provide TurboLinux workstation solutions to SMC's North American resellers and users.

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