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Intel, McAfee Product Expected In 2011

8/30/2010 12:01:00 AM Eastern
Santa Clara, Calif. — Intel’s recent acquisition of McAfee for $7.7 billion should result in a joint product sometime in early 2011.

A company spokeswoman would give no details on the proposed product other than to say it will place McAfee’s Internet security capability on an Intel processor. Intel believes this level of protection is needed particularly for mobile webconnected devices like tablets, cars and anything else driven by a processor, the spokeswoman said.

This was done for Intel to get security technology into their processors, said Steve Baker, industry analysis VP for The NPD Group, adding that it will help bolster McAfee.

“McAfee has been down a bit the last few years, with Symantec and others like Kaspersky and Trend Micro picking it up lately,” Baker said.

Outside joint products, analysts said the deal was struck so each company could gain access to the other’s intellectual property.

Gartner’s research VP Leslie Fiering said McAfee was an excellent pickup for Intel as it is very profitable with excellent margins, and McAfee itself has recently made several acquisitions to bolster its own intellectual property library.

“This was all about intellectual property, and I feel it was a good deal for both parties,” she said.

The deal has received approval of the company’s boards and is expected to close after it receives approval from McAfee’s shareholders and regulatory clearances. McAfee will become a wholly owned subsidiary of Intel, and it will report to Intel’s software and services group.

Intel said there will be no layoffs or consolidation between the two companies, with each retaining their current office space. In addition, McAfee will continue to offer its full line of products.

When finalized, McAfee’s position within Intel will likely resemble that of software distributor Wind River, which was bought last year, the company said.

Fiering did not think the mating of Intel and McAfee will have any direct impact on the former company’s ongoing battle with AMD in the processor space. Instead, she believes whatever is co-developed between the new partners is likely to be open platform.
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