Intel to Buy McAfee
While the deal makes perfect sense in hindsight, this deal was out of left field in a number of ways. Setting aside the valuation issue, which has very little impact on MSPs or our industry (unless you are a software/hardware vendor), what does an Intel/McAfee deal mean for the average MSP?
1) It certainly signals the rise of cloud computing, if that was ever in question. McAfee already bolstered its own credentials as a cloud provider when it acquired MX Logic a short time ago but the fact that a chip manufacturer is jumping into the online services space with such vigor is noteworthy. We haven’t seen this type of movement from Intel competitors so it is nice to see a non-traditional player validating the cloud computing and managed services model in such a direct way.
2) vPro. Intel’s remote management chipset which has received a lot of buzz in the MSP world probably will benefit from a deal with McAfee. Even if there is no technical relation between the two products (which I’m betting won’t be the case), this deal will undoubtedly keep Intel very close to the MSP channel. It will be curious to see if any of the McAfee products begin to interact in any way with the vPro functionality.
3) Intel, again, is interested in services. For those of you who don’t remember Intel’s hosting ambitions a decade ago, this is not the first time Intel has dabbled in the IT managed services game.
No matter how Intel integrates a company like McAfee into its offerings, my mind is spinning at the possibilities of a chip manufacturer and a cloud security vendor working together. Whatever it is, it’s probably going to be exciting.
Charles Weaver - Aug 19th, 2010 - Articles
Charles,
You stole our thunder
. This was going to be today’s blog, but instead I shall post it as a comment to yours:
We’ve discussed before that the biggest impediment to Cloud adoption is security. Until Cloud security fears are assuaged adoption will stay slow: however, a clear player emerged in the Cloud security world today. The big news, Intel purchased McAfee for 7.68 billion. It’s clear that Intel is positioning itself to take on the future of security risks.The importance of security is always paramount and Intel’s move shows they are looking towards the future not today. Cloud Computing provides the opportunity for a wide array of thin clients to access data remotely. ZDNet noted that other than mobile devices and computers “TV’s, cars, medical devices, and ATM machines” will soon have access to the Web. The McAfee acquisition enhances Intel’s plan to provide “hardware-enhanced security” for existing and future devices.
One of the big question that has emerged? Did Intel need to buy McAfee? Maybe preventing this has something to do with it? Not everyone thinks the purchase of McAfee was a bad idea. The real truth is that McAfee is a revenue generator and will strengthen two lines, the one at the bottom and the one of the product variety.
Our thoughts on the purchase? Betting on Cloud security and device security is a sure bet. The next generation of Internet users will have an impressive array of devices that connect to the Web. Securing these devices and the data they access will be a critical part in the future of the Web.
Scott West
CloudSway
Sorry for stealing your thunder
The CNN Money article you referenced is a really good article and everyone should read it because it offers great insight into how the “non-MSP” world views our industry.
Leaving aside the finances of the deal (did Intel pay too much for McAfee and whether they needed to buy the company), I think this is a pure and simple hedging of bets for Intel. In the unlikely scenario any part of the chipset line of business starts to fall off they now have a great online security services division that should continue to forge ahead well into the future.
The really big payday is if they can combine both the chips and the security into something that does not currently exist.