Intel to Buy McAfee – Initiative to “Secure” the Future

Intel Corporation announced today that it is buying computer-security software company, McAfee for $7.68 billion in an all-cash deal.  The stated strategy is to combine McAfee’s security expertise with Intel-based products, especially for Smartphone and other, wireless internet-connected, devices.  Intel looks at security as a necessary “third pillar” in the computing experience in addition to “energy-efficient performance and connectivity.”

Intel, whose core market is computer microprocessors, is trying to expand into the burgeoning wireless market. The number of internet-enabled phones has already surpassed the number of internet enabled computers. 

Even with the McAfee acquisition, Intel’s intent to become a dominant player in the Smartphone market faces an uphill battle with ARM Holdings.  ARM is the maker of the processors for the iPhone and is far more prevalent in the imbedded processor market. 

It is important to point out that security is not yet an issue in this market.  As well, the anti-virus market for Smartphones is miniscule.  While things change rapidly for high tech companies, on the surface, the prospects for Intel’s success, with its new strategy for the future, is hardly secure.