Intel’s $7.7 billion purchase of security company McAfee makes plenty of financial sense, but it’s a head-scratcher from a technology standpoint.
The deal seemed to come out of the blue: Intel is the world’s largest chipmaker, so a security software company wouldn’t seem to be a good fit for the hardware-focused vendor. Intel has previously stated that security is one of its top priorities as it tries to get its processors into every type of connected device. But existing relationships with security companies, including McAfee, appeared to many analysts to be sufficient for Intel to execute on its technology goals.
“I’m not quite sure why they bought this company,” said Steve Kleynhans, microprocessors analyst at Gartner. “The purchase plays to all of Intel’s initiatives, but the question remains: Did it have to buy a company to do that?”
A call between Intel executives and investors Thursday morning did little to answer that question. Intel’s leaders went buzzword crazy in describing the deal, saying over and over that the McAfee purchase offered “deeper collaboration and integration between hardware and software,” “substantial differentiation for our products and platforms,” and “enhanced security products.”
But Intel CEO Paul Otellini offered up one buzz phrase that actually means something to the company right now: “Value for Intel shareholders.“
Intel’s $7.7 billion purchase of security company McAfee makes plenty of financial sense, but it’s a head-scratcher from a technology standpoint.
Nvidia’s acquisition of Ageia in 2008 was a strategic move to boost the marketability of its GPU offerings. With the discontinuation of the dedicated PhyX boards, the acceleration moved to the GeForce GPU as a differentiation factor that set it apart from AMD’s ATI cards.
What’s in your computer? If you’re like most of us, you can probably name the processor (Intel or AMD, Celeron or Pentium), maybe how much RAM it has, and maybe how big the hard drive is.
In the future, everyone will have their own Jeopardy-style video walls. Or at least that’s the future AMD envisions.
For a limited time only, get Batman: Arkham Asylum FREE with any qualifying