Analyst: McAfee buy moves Intel toward IBM model

Dylan McGrath, EETimes
8/19/2010 2:25 PM EDT

SAN FRANCISCO—Intel Corp.'s proposed $7.68 billion acquisition of security software vendor McAfee Inc. moves the No. 1 chip vendor further down a diversification path that could eventually see the company relying less on chip sales and more on software and consulting services, according to a Wall Street analyst.

"Over the long term, concerns about the potential slowing of Moore's Law could drive Intel to increasingly diversify away from just chips, and more towards software and consulting services—something closer to the IBM model," wrote Craig Berger, an analyst with FBR Capital Markets, in a report circulated Thursday (Aug. 19).

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