Although you have probably never heard of Azingo (I know I hadn't), the OS has a Webkit-based browser, runtime, Flash runtime and full developer tools.
The move is backed by comments by Co-CEO Sanjay Jha, who said recently that the company was looking into owning and running their own operating system: "I’ve always felt that owning your OS is important, provided you have an ecosystem, you have all the services and you have an ability and the scale to execute on keeping that OS at the leading edge. And I continue to believe that at some point, if we have all of those attributes, that owning our own OS will be a very important thing."
While it is unclear if Motorola will drop Android support fully for Azingo, it appears it will at least be integrated into the next update of MotoBLUR.
Pic, story via AndroidandMe: