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Intel justified the acquisition by outlining plans to push security to every device through building a baseline security capability into every chip.
But those plans have not come to fruition and some of the key executives at Intel who led the acquisition and championed the concept of hardware-based security have since left the company.
Intel has been forced to restructure to focus on datacentres for the cloud industry and mobile and wearable technology in the face of the global slowdown in PC shipments.
As part of the restructuring exercise, Intel announced plans to cut 12,000 jobs in the next year, or 11% of its global workforce, which is expected to save the company $750m in 2016.
In first quarter financial results, the Intel security group was one of the best performers, with revenue of $537m, up 5% on the previous quarter and up 12% year-over-year.
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- Despite growth in Intel’s key datacentre and IoT businesses, investors remain concerned by falls in its core PC chip business amid market declines.
- Intel adds to previous strategic investments in drone technology to bolster its competitive position in the drone chip market.
- Chipmaker Intel blames the weakening macroeconomic situation – with continued delays in hardware refresh cycles – in its datacentre business forecast revision.
- Computer chip maker Intel posts stronger than expected third-quarter financial results, indicating a recovery from the effects of the economic downturn.
Intel Security is therefore a key asset for the company that could help recoup the $7.7bn acquisition cost or even more if the right buyer can be found.
The Financial Times (FT) reports that due to the increased interest from private equity (PE) buyers in cyber security companies, a group of PE firms may form an alliance to buy Intel Security.
Citing people close to the discussion, the FT said the deal for Intel security as one of the few remaining dedicated security businesses could be one of the largest in the sector.