After trying to push its way into the increasingly lucrative consumer electronics market for the last few years, Intel hopes that adding a security offering will be just what the market needs.
The world's biggest chip maker announced today that it's set to purchase security software maker McAfee for $7.68 billion. Intel said both boards of directors have approved the deal, and McAfee is expected to become a wholly owned subsidiary within Intel's Software and Services Group.
That means the chip maker is becoming a security company, as well. And with this move, Intel said it's looking to enhance its mobile strategy .
That's a smart move, say several industry analysts.
"This definitely could help Intel," said Jim McGregor, an analyst with In-Stat. "The PC industry already has had a real focus on security. Smartphones don't have that same focus. And think about it ... My smartphone probably has as many bookmarks and contacts as my computer does. Think about the threats to that, especially if I'm doing banking or whatever through my mobile phone."
Bill Kircos, an Intel spokesman, told Computerworld today that the company initially will sell chips and security software separately. However, in the coming months and years, there will be a gradual evolution, and Intel will begin to adjust its chips so they work better with McAfee security software. Eventually, Intel will build more security features directly onto the processor.
Kircos added that researchers at Intel and McAfee have been working together on a silicon-based project for the last several months. He declined to elaborate.
"Intel is obviously hoping this will help them finally break into the device market," McGregor said. "They've been trying to plow their way into that market for three years, but it's been tough. They just haven't had the right offering ... This move is to enhance that offering."
Shane Rau, an analyst with market research firm IDC, said Intel's acquisition of McAfee goes beyond selling more chips.
Of course, Intel wants device makers to buy more of its chips, but the company has a bigger plan in the works. According to Rau, Intel wants to provide more of the "stack" for mobile devices - the processor, security software and the operating system.
"Intel is looking to provide more of the complete package for devices," Rau said. "Remember that Intel bought Wind River , which is associated with an embedded operating system and design tools for mobile devices. Now think of McAfee as a potential application and service provider for embedded systems."
Like Apple , which went from selling the hardware to the software and even the silicon in its Macintosh computers, Intel wants to provide a more complete offering.

link: http://www.itnews.com/processors/21486/intel-moves-beyond-just-chip-mcafee-buy

Intel bid could shake up IT security??

If Intel's bombshell bid last week to buy McAfee for $7.68 billion pans out, the companies pledge to bring an unprecedented level of embedded security to networked devices ranging from smartphones to servers, potentially changing the way in which security is delivered to enterprise IT shops.
Tech industry's M&As in 2010
Intel and McAfee have been working closely on a host of projects for 18 months and expect to show the first fruits of their labor early next year. Among other things, McAfee technology could complement Intel's existing hardware-based security and management technology, dubbed vPro.
While company officials wouldn't reveal details on what products might result, they did say that their combined hardware and software could be used to protect Internet-connected devices -- from handhelds to automated teller machines to cars -- from growing cyberthreats in a consistent manner.
McAfee CEO Dave DeWalt wrote in a blog post that the "current cybersecurity model isn't extensible across the proliferating spectrum of devices…. The industry needed a paradigm shift, incremental improvements can't bridge the opportunity gap." Intel CEO Paul Otellini got more specific at the acquisition press conference: "We believe that security will be most effective when enabled in hardware."
The combination of companies – McAfee would operate as a subsidiary within Intel's Software and Services Group -- could also open up new sales opportunities. "Everywhere we sell a microprocessor, there's an opportunity for a security suite," Otellini said of what would be the biggest deal in Intel's history. Though he stressed that Intel is open to working with other security companies as well. (A short history of Intel acquisitions.)
While it's not immediately clear what impact the deal will have on corporate customers, industry watchers weren't shy about issuing warnings.
"It scares me," says Gartner research director Peter Firstbrook, who worries about whether the deal will distract the Santa Clara security company from efforts such as uniting its assorted security projects under the ePolicy Orchestrator management system. He also has concerns for customers with heterogeneous hardware environments that Intel and McAfee technologies might become too entwined to the exclusion of others.
However, Firstbrook does acknowledge that McAfee could bring Intel R&D that will improve its processors and provide hooks into its hardware that could be exploited by McAfee and other security vendors.

Link: http://www.itnews.com/business-issues/21514/mcafee-inside-how-intel-bid-could-shake-it-security