Thursday, April 25

Intel Buys McAfee

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Intel continues to acquire businesses and increase their market share outside of their core business. Consider something for one minute, what is the first thing that comes to mind when I mention Intel? I hesitate to think that the answer would be anything other than CPU’s. The Central Processing Unit handles the processes / instructions of software. It is arguably the most important part of any computer or notebook.

You need an anti-virus to ensure that your computer runs optimally. McAfee will operate as a subsidiary and will continue to provide security to both individuals and corporate clients. I think that Intel also had in mind that McAfee had an interest in providing security to smart phones. McAfee acquired 2 businesses (Trust Digital and TenCube) that focus on the new industry of mobile phone security software.

So you then need various other components to perform, to ensure that you have a functioning PC. The acquisition of McAfee, Intel underlines its strategy of seeing its operations as a holistic activity which covers many parts of the technology industry.

Intel says the “acquisition enables a combination of security software and hardware from one company to ultimately better protect consumers, corporations and governments as billions of devices – and the server and cloud networks that manage them – go online.”
Intel also partnered with Nokia earlier in the year on creating a mobile phone operating system.

This continues to paint a picture that Intel is making an effort  to become a bigger player in the technology industry. This could be a very good investment for Intel but the purchase price of $7.7 billion might be a cause of unhappiness for shareholders.

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