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Intel: We're Still Tight With Microsoft Despite Linux Strain: Page 2 of 3

"Microsoft didn't have an allergic reaction to it," Swope said.

Intel is also integrating virtualization features into the processor architecture that can be exploited and enhanced by EMC's VMWare line and Microsoft's forthcoming Virtual Server and Virtual PC software, as well as forthcoming Linux virtualization products.

However, it's clear that Microsoft and Intel remain snug on the desktop front. Though Intel has been pushing Linux for servers, Swope is less optimistic about its prognosis on the desktop.

"Linux is stronger than it was two years ago, but I don't feel the same revolution" that happened on the server side will happen on the desktop, Swope said.

Under questioning, Intel acknowledged that it "owes" the Linux community a Linux driver for its Centrino chip and is working on it. That driver will deliver parity for those who want to run Linux on notebooks and laptops as well as Windows.