 For the Silicon Sultan in Intel, the operational canvas has been getting wider—beyond PCs and Servers. A few years back, talking to Digital Edge, Dr. Craig Barrett, the former CEO of Intel Corp, and IT industry’s doyen, said that the world of traditional computing (says PCs and Servers) had given way to wide spectrum of possibilities, and Intel aspired to cater to most of them with its products & solutions. Now, when Intel acquires ‘security-software’ company, McAfee and Germany’s Infineon Technologies, a major developer of processors and microcontrollers, the global IT industry does not look struck- dumb—an anticipated strategic sequel drafted by ambitious President & CEO, Paul Otillini. However, Digital Edge tries to get an insight into the scope and deployment possibilities of McAfee security software as well as Infineon’s silicon products in its overall business paradigm.
For long, Intel has been striving to infuse strong security essence into the hardware level. But for the general masses, Intel’s subtle security claims have not been discernable. People still wanted specialized security software being offered by a host of IT companies. Any security breach noticed in any machine makes people feel the failing character of processor as well as Operating System (OS). Even though, a PC or a Server looks great in terms of its configurations, a compromised machine hurls nasty embarrassments at the entire component ecosystem—primarily at processor. So, security has been a sensitive issue for a company like Intel; as for any reliable and sustainable compute, security provisions are simply indispensable. The decision of Intel to acquire McAfee at a staggering cost of $7.68 billion looks very much guided by the aspiration for providing a ‘Truly-Safe-Compute’. But, behind this altruism, Intel gets huge business opportunities as well. While fortifying its security fencings at the hardware level, MCAfee can bring a great assuring factor to millions of IT users across the globe. However, Intel’s McAfee would throw a huge challenge at many of security software vendors including Symantec, Trend Micro, Kaspersky Lab, QuickHeal and K7 Computing. This is very likely that Intel would also offer bundling of software products along with its processors as well as motherboards. If this happens, the security software market would feel unprecedented competition from the house of mighty Intel.
The aspiration which was shared with Digital Edge by Dr. Barrett, is now being put to reality by the maverick Otellini. That Intel has moved beyond the scintillating realm of PCs and Servers. Today, the company offers processors for many non-PC/non-server applications which interestingly include UTMs (Unified Threat management) appliances. Except Fortinet, most of the UTM players—(be it Astaro, CheckPoint, SonicWALL or Cyberoam)—they all use Intel’s processors. Mobile devices (including smart phones and PDAs) have been obvious focus areas for Intel. The acquisition of McAfee would also enable Intel to harness the market of mobile security. So, the multi billion acquisition of McAfee would augur well with the sagacious business model of Intel. In the meantime, the $1.4 billion acquisition of wireless unit of Infineon Technologies is likely to enhance the overall silicon punch of Intel. Infineon, a widely respected silicon product company, has been addressing the huge processors and microcontrollers markets for networking products, mobile devices, lighting, power management, automobiles, and consumer products. In the larger silicon vision of Intel, Infineon has the right mettle to help the acquiring company to realize its dreams. For Intel, the acquisitions of both McAfee as well as Infineon Technologies would definitely vindicate the elevated expectations of the Silicon major.
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