Cogito

Security at the Processor Level?

Posted in Uncategorized by qmarks on August 21, 2010

This week Intel agreed to buy McAfee at $7.7 billion, in cash. Offering $48 for each stock, Intel agrees to pay 60% premium to acquire the contol of the company.

How does this bold move fit into Intel’s strategy? The chipmaker’s strength is manufacturing, designing microprocessor, chipset, motherboard and other hardware components. After rapid expansion of vast array of Internet-connected devices, street expects that Intel’s focus should have been selling microchips to those mobile/portable devices. Especially in a duopoly market with a single yet relatively small competitor AMD, Intel might have take the opportunity of being a big player and with a first mover’s advantage it shall acquire microprocessor producers of smart phones. I think the opposite. In my opinion the acquisition of McAfee is a signal that Intel saw the business case of complex security issues at an inter-connected world.

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