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Intel announced that it has bought XML solutions provider Sarvega, but did not say how much they bought it for. Sarvega makes network routers based on XML.

Intel is known to have previously contributed to a $20 million venture capital fund of Sarvega's. I guess now Intel wants to play a bigger part in the company's existence.

"With the accelerating acceptance of Service Oriented Enterprise solutions in the marketplace, our customers are demanding greater performance with respect to XML processing," said Intel's Software and Solutions Group manager Richard Wirt.

Wirt added, "This acquisition supports our strategy to deliver added value to Intel's computing platforms with products that will help our customers implement end-to-end XML solutions." Michael Singer of CNET News writes:

Intel has tried to sell full-fledged hardware devices before, not just chips, and the result mostly hasn't been pretty. The chipmaking giant purchased Xircom back in March 2001 and then eventually dismantled the company to get at Xircom's adapters for handhelds and mobile PCs.

It also sold its own brand of XML server appliances in 2000, but subsequently got out of the business.

Employees of Sarvega will now become part of Intel's Software and Solutions Group. Sarvega's products will continue their availability with full support.

Chris is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.