The silicon maker might essentially be looking for a buyer for its security division as part of an attempt to focus on the Cloud computing market and IoT in the coming decade
Intel Corporation (NASDAQ:INTC) is reportedly meeting investors and bankers looking to broker a sale of its security business in order to cut down on costs and revamp the company into a more cloud and IoT-based focus. The Silicon giant has been trying to find firmer footing as it attempts to deal with the reality of a shrinking or stagnating PC market as well as the limitations of advancements it can make to silicon-based chips for PCs in the foreseeable future.
Intel has essentially moved away from Moore’s Law, something that governed as a rough indicator of technological advancements over the past few decades. It has also come to terms with the fact that the biggest gains it can make currently are not performance based, but rather power consumption and efficiency related. It has since conducted 2 waves of layoffs, and the third is primarily focused towards its sales and marketing departments, a safe bet considering the position it currently is in with a virtual monopoly in most of its CPU markets. It has made significant cuts to its underperforming mobile device business as well as cut down on product lines over time.
Intel purchased McAfee in 2010 for about $7.6 billion and continued to build it into an asset with additional resources from the semiconductor giant itself. The division was rebranded to Intel Security over time and it continued offering the slew of products McAfee did as a standalone operator as well as building in some of its security measures at a hardware level on its chips. The fact that it is contemplating a sale could indicate how far the silicon-maker has come when it comes to exploring new avenues for growth as it remains extremely bullish on the cloud server market as well as the IoT market.
According to analysts, Intel might not be selling out all of its assets in the security division, citing the need for IoT security as a new avenue for revenue. Instead, Intel could be disposing off assets it feels are no longer paramount to its long term goals or important to its core business interests. Irrespectively, Intel, as a cheaper play in computing thanks to its restructuring, could usher in a new batch of investors in the long term. The silicon maker is cutting as many as 1200 jobs up to mid-2017 as it attempts to transition towards the general market push for data centers and smaller chips thanks to the cloud and IoT.