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Yocto will be built on a host machine targeting and igep board. It will use Poky software to generate the custom linux distribuion Linux distribution. Before starting with yocto, you need to set up the host machine.
Yocto is expecting the host system to have preinstalled packages. Depending on the type of development, the host system will need more or less packages. On Ubuntu / Debian here is a table depending on the type of development.