UPDATED 11:17 EDT / MARCH 18 2011

It’s a Busy Week for Intel: Acquires McAfee and Silicon Hive

Whether the McAfee purchase was overpriced or not, it’s no matter for Intel. The real value that McAfee brings the company lies within the products and features that will beef up the Intel;s portfolio and stance in the market today. The official $7.7 billion pact was inked and the all cash-deal is expected to make the silicon giant, a security software mogul in the cloud. McAfee security is going to usher Intel into a new era.

In a conference call with Wall Street Analysts, Intel senior vice president and general manager of the Software and Services Group, Renée James shares the vision of the company that triggers the purchase of McAfee. “It became clear to us that security was going to be a very important feature to help us differentiate our silicon… Security market will consolidate because there will be a step-function change in how security is delivered. She further mentioned about the cloud, “In the long term security will be a differentiator for mobile devices. The cloud piece is a high-order bit. You can’t wake up and build it.”

Wounded after the 2009 economic crackdown in the United States, Intel is out to reclaim their the leading market position. They greeted 2011 with the a $26 million investment in the mobile cloud, the launch of Thunderbolt– a high speed multi-purpose connection technology, the debut of the fastest SATA SSD in the market and the release of the new virtualization-optimized chip. Just today, Intel announced that it will be producing chips for micro servers, directly competing with ARM.

The past five to seven days proved to be Intel’s most productive week since the year’s opening. Following the hyped McAfee acquisition, world’s largest semiconductor company bought Philips Electronics spin-off Silicon Hive. Financial figures were not made public. But, this purchase could actually fulfill Intel’s wish to invade smartphones and tablets—a line of business dominated by ARM.


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