MontaVista Software Expands Sales, Support, and Services in Germany,
Switzerland, and Austria

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| MontaVista® Software, Inc., the leader in embedded Linux® commercialization,
| today announced that it is expanding sales, support, and services in Germany,
| Switzerland, and Austria by appointing Hitex Development Tools GmbH as a
| distributor of MontaVista products for embedded developers and commercial
| device designers. In addition to the sales, support, and services MontaVista
| will continue to provide from the MontaVista office in Munich, Germany, Hitex
| will sell MontaVista products and offer technical support and professional
| services.


Linux loyalty runs high among embedded software developers, says VDC

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| Looking ahead, 87% percent of Linux users plan to use Linux in their next
| project. In both cases, use of free distributions outnumbered use of paid
| distributions by a sizable margin.

Linux to grow 278% in embedded/mobile/real-time apps

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| Linux use in "next" embedded, mobile, and real-time projects will grow 278
| percent over that in "previous" projects, suggests a recent survey by Venture
| Development Corp. (VDC).

The Secret Life of Embedded Linux

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| Manufacturers have to weigh sometimes competing factors when selecting
| Linux over Windows or a proprietary OS in consumer products. Often,
| the flexibility of Linux balances out those differences, sometimes
| it does not.
| Clearly, though, Linux's freedom and flexibility are driving the
| trend to putting Linux inside consumer products that are not
| encumbered with hardware restrictions. Manufacturers are not
| dependent on a single vendor with Linux.
| "Linux is a moving trend. More and more manufacturers are using
| it," concluded MontaVista's Ready.
| Yaghmour concurs. "Every engineer adapts it and expands the user
| base," he said. "Anybody who wants to enter the market is using
| Linux due to its low cost. It is hard to justify changing for a
| proprietary OS."