Crusoe Winners and Losers

So Transmeta is definitely the big winner with this technology. They have demonstrated something very promising. But I got to thinking about who else out there will benefit from this technology. And who stands to lose.

THE WINNERS: IBM, bar none. With their chip production and technology transfer arrangements with Transmeta, Crusoe’s success would increases the visibility of IBM and their breakthroughs and discoveries.

OEMs. OEMs building mobile Internet devices around Crusoe can expect less time to production, lower costs, and flexibility and variety in form factors…sounds good for the bottom line.

Consumers. If Crusoe delivers as promised, Intel and AMD have a lot of work ahead of them. This can only benefit consumers as these companies compete for our money.

THE LOSERS: Intel. It is not turning out to be a good year for Intel. AMD has surprised with their Athlon chip, and now Transmeta is competing directly with Intel in providing chips for mobile devices. The advantages in the Crusoe are formidable: smaller size, less heat dissipation, longer battery life. It will be interesting to see how Intel responds.

Microsoft. Linux anyone? Sure, the Crusoe is designed to make all these future devices compatible, but in effect this decreases the importance of the operating system. With Crusoe bundling Mobile Linux with the chip, Microsoft will face stiff competition in the soon to explode mobile Internet device market.

Whatever happens, it is good that a new company has entered the fray. In the coming months, we will learn what Transmeta and Crusoe really mean to the Information Age.