Why the Intel McAfee Deal Forces Re-Evaluation of Business Strategy

Intel raised eyebrows today by announcing that they intend to purchase PC-security giant McAfee in a $7.68B deal, paying a 60% premium over McAfee’s 8/18 closing price. What I find interesting about this move is that it is an aggressive move to integrate security in the way a major device maker does business.

Intel President and Chief Executive Paul Otellini said, “In the past, energy-efficient performance and connectivity have defined computing requirements. Looking forward, security will join those as a third pillar of what people demand from all computing experiences.”

David DeWalt, McAfee’s CEO said, “The current cybersecurity model isn’t extensible across the proliferating spectrum of devices — providing protection to a heterogeneous world of connected devices requires a fundamentally new approach to security. Frankly, the industry needed a paradigm shift — incremental improvements simply couldn’t bridge the opportunity gap.”

Renee James, Intel’s Software and Services Chief said, “As we look at the businesses we’re in, we see that security is the №1 purchase consideration. We believe that we can enhance security with hardware and come up with a better solution.”

At Rook, we frequently talk about providing IT Risk Based Decision Support and we have been told that we focus on “delivering what matters”. To earn that tagline, we focus on business needs by designing solutions that are in synch with business enablement, and measurable, repeatable, sustainable architecture, controls, and processes. Rook Consulting’s CEO, J.J. Thompson believes that “Intel purchasing McAfee is an indicator that big business is almost ready to integrate security and compliance programs, instead of bolting them on as an afterthought.”

“We challenge our clients to focus on doing what is right for the business, and less on filling the compliance checkboxes that have become the ‘safe’ way to go in IT risk management.” Is this the start of a movement? The Rook team hopes so.

To help businesses get ahead of this new trend, Rook encourages clients to ask 3 tough questions:
(1) Do you have a leading data security, privacy, & compliance program?
(2) Is your program enabling the business or is it simply there because “it has to be done”?
(3) What can be done in the next 90 days to leverage your program to gain competitive advantage?

Ask these questions at various levels within the organization. The answers, while varied, will provide a reality check to your company’s ability to be in lock-step with the trend that is starting with the Intel McAfee deal. According to Thompson, “If a market maker like Intel is going all-in on security integration, with the backing of Goldman Sachs, maybe its time to re-evaluate your strategy?”

Contact Eric Hollister by email eric@rookconsulting.com