Intel Buys McAfee: Why?

Intel Corporation is acquiring security software firm McAfee. The $7.68 billion deal has been approved by boards of both companies. So why is the chipmaker buying a security software firm? One can argue it is a move "up the stack" from hardware to applications. That is true, but probably not the key driver.

Intel now can craft products that combine hardware and software, and that is an upside. But perhaps the most compelling argument is that Internet devices now are moving away from PCs and other similar devices to other machines that one does not traditionally associate with security suites, such as sensor networks, automated teller machines, medical devices, cars or TVs.

Intel now appears to regard security for all those devices, and its chip-buying customers, to be on par with its strategic focus areas in energy-efficient performance and Internet connectivity.

Intel Changes The Game With McAfee Buyout