Wednesday, September 1, 2010

Intel takes over McAfee

It is just too easy to say: I told you so. It is too common. It just doesn't grasp the value of the foreseen Truth. :)

Intel (INTC) buys McAfee - only a mere 7.7 cents on the trillion - making one of its biggest takeovers in history. Intel has a venture capital arm, Intel has bought and sold plenty of businesses. But this one is a huge bite.

Security is the next battle. Too much risk inherent already in the system with no hope of containing it. There is no point in producing the next computing power of the future of the planet if its value can so easily be diminished by lack of predictability.

The last time I went over technology security companies' financials, they were over blowing their revenue around their "shipped boxed software" to retailers. It was a marking of the shipped box as revenue. If not sold, it was written off against some huge bucket account that continued to grow over time until the day it was to be written off as "bad stuff" in the far future. FCC started an investigation a few months later against some of them for other infractions.

I love this move. I just couldn't think of anything more meant to be. It is the vertical integration of what it should be and not of the traditional value chain.

Intel just hasn't serviced the ever changing landscape of final customers. The little bell on the side of the dining table in the master's palace which makes conglomerates rearrange themselves across the world in a matter of weeks.

Anyways. So surprising, and so known ahead of time. This doesn't seem like the traditional move searching for more sales. This is a move to take responsibility for the final product and deliver what it should be. A world neural network feedback loop of never ending learning has just been born. The feedback of the final product will be received and searched by the leader in security and sent back into the wafer line. I don't know if bold describes it, but secured will be.