Red Hat Inc’s already cozy relationship with Intel Corp got even cozier yesterday, when the San Jose chip maker announced it would bundle Durham, North Carolina’s branded Linux with all server platforms marketed through its ISP. Intel already ships Microsoft Windows NT with its ISP servers, but now customers now have the choice of whether to pay for their operating system, or join the growing ranks of the open source software fanciers.

Intel has long been a backer of Red Hat, being one of the company’s original investors, but now, says Colin Tenwick, Red Hat’s VP and general manager for Europe, the Middle-East and Africa, Intel is getting involved in nitty-gritty marketing effort that will bolster open source software credentials in the ISP space. The companies also already collaborate on Linux engineering projects, and Tenwick claims that the open source OS is starting to underpin some of the world’s biggest web sites as joint-initiatives as red hat’s and Intel’s prove the concept of scalability.