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Intel-McAfee Deal Bets on Building Security Into Hardware

By The Wall Street Journal

August 19, 2010

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Intel Corp. agreed to buy security-software specialist McAfee Inc. Thursday for $7.68 billion, a surprise transaction that underscores the company's determination to expand beyond its stronghold in chips that power most of the world's computers.

The deal, the largest in Intel's 42-year history, was described by the companies as evidence that security is becoming one of the fundamental pillars of computing. With Internet connections rapidly being added to consumer electronics devices, appliances, industrial equipment and other hardware, the approaches that have served to protect today's personal computers and servers aren't adequate, Intel and McAfee officials said.

Armed with expertise from McAfee, Intel suggested security could be built more broadly into computer chips and other hardware, creating products that are more resistant to attack. "We believe security will be most effective when enabled in hardware," said Paul Otellini, Intel's chief executive officer, in a conference call.

From The Wall Street Journal
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