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August 17, 2005

Intel eyes web services with acquisition

Intel Corp has acquired Sarvega Inc in order to get its hands on XML processing technology useful in web services infrastructures.

By CBR Staff Writer

The company is being cagey about precisely what the idea behind the deal is, but to say that it is part of the recently launched platforms strategy.

This is the strategy in which Intel bundles hardware and software customized to certain applications, rather like its Centrino bundle is optimized for wireless laptops.

Sarvega, which competes with the likes of Reactivity Inc, makes network appliances that handle XML processing faster and more securely than a regular server could.

The startup says its XESOS software, the core of its various appliances, can route, validate, parse, transform and encrypt XML traffic at wire speeds.

Intel said the company will be absorbed into its Software and Solutions Group, but specific plans for product integration were not disclosed.

Sarvega’s existing customers will continue to be supported, and it will sell its current products, but Intel did not say whether it will continue to develop the line as standalone offerings.

The terms of the deal were not disclosed, but Intel is unlikely to have paid a great deal. The XML processing market has not taken off as fast as the handful of startups that play in it would have hoped.

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